Question
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
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.
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