A.

The accountant of Dee Corp. provided you the following information for the year ended December 31, 2014:

Fair value of plan asset, January 1 P8,500,000

Present value of benefit obligation, January 1 7,500,000

Asset ceiling, January 1 400,000

Current service cost 1,400,000

Past service cost during the year 200,000

Unrecognized past service cost 300,000

Actual return on plan asset 840,000

Contribution to the plan 1,200,000

Benefits paid to retirees at scheduled retirement 1,500,000

Unrecognized actuarial loss 200,000

Decrease in the present value of benefit obligation

due to changes in actuarial assumptions 200,000

Present value of additional defined benefit, obligations settled 500,000

Settlement price of the additional defined benefit obligation 400,000

Asset ceiling, December 31 200,000

Discount rate 10%

Questions:

1. What is the employee benefit cost to be recoognized in P/L?

2. What is the employee benefit cost to be recognized in OCI?

3. What is th present value of the projected benefit obligation as of December 31?

4. What is the fair value of the plan assets as of December 31?

B.

Following are Blaisdel Company's balance sheet at December 31, 20X0, and information regarding Blaisdel's policies

and past experiences.

Blaisdel Company Balance Sheet at December 31,20X0 Assets Equities Cash P 33,000 Accounts payable P 9,000 Receivables 31,000 Income taxes payable 8,000 Inventory 59,000 Common stocks 180,000 Fixed assets, net 102.000 Retained earnings 28,000 Total P225.000 Total P225.000