Problem #4

Problem 4: The following information relates to the defined benefit pension plan for the Citywide Company for the year ending December 31, 2020 Accumulated benefit obligation, Jan 1 Php 6,900,000 Accumulated Benefit obligation, Dec 31 7,793,500 Fair Value of pan assets, Jan 1 7,552,500 Fair Value of plan assets, Dec 31 8,347,500 Deferred gain on plan asset during 2020 42,500 Amortization of deferred gain 48,750 Employer Contribution 637,500 Benefits paid to retirees 585,000 Settlement Rate 10% 4. How much would be the net pension cost for the year 2020