Current service cost Actual return on plan assets 3,000,000 1,200,000 Interest cost 800,000 Settlement price of benefit 500,000 obligation paid in advance Present value of benefit 600,000 obligation paid in advance Interest income 1,000,000 Actuarial gain on PBO 400,000 500,000 EMPLOYEE BENEFITS DINA ENG Company reported a prepaid benefit cost of P1,500,000 on January 1, 2016. The entity provided the following information related to a defined plan during the current year: Past service cost Effect of asset ceiling 300,000 800,000 During the year, the entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to the plan of P2,100,000. The discount rate is 10%. (6) What is the employee benefit expense for the current year? (7) What is the net remeasurement loss for the current year? (8) What is the defined benefit cost? (9) What amount of prepaid benefit cost should be reported on December 31? ACCOUNTING FOR INCOME TAX CARL DE RETA Co. reported net income for the current year 2014 at P10,000,000 before taxes. Included in the determination of the said net income were: Benefits paid to retirees 2,500,000 Contribution to the plan 4,000,000 Temporary differences: Projected benefit obligation - 8,000,000 Accrued warranty expenses 250,000 Jan. 1 Rental payments made in advance 400,000 Fair value of plan assets 10,000,000 Advance collections from customers 500,000 Jan. 1 Provision for probable losses 900,000 Asset ceiling-January 1 1,500,000 2,000,000 10% Asset ceiling-December 31 Discount rate (1) What is the 2016 benefit expense? (2) What is the fair value of the plan assets at December 31? (3) What is the projected benefit obligation at December 31? (4) What is the net remeasurement gain or loss in OCI? *The income tax rate is 40% and is not expected to change in the future. Permanent differences: Non-taxable income Non-deductible expenses 500,000 100,000 REQUIRED