Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shared based compensation, SAR and Employee Benefits Use the following data to answer #6 - #10. (Guaranteed Thumbs up for correct answers) The following

Shared based compensation, SAR and Employee Benefits

Use the following data to answer #6 - #10. (Guaranteed Thumbs up for "correct" answers)

image text in transcribed
The following information is given about a funded defined benefit plan of ROYCE Company. On January 1, 20x6, ROYCE Company initiated a pension plan for its employees. The company's actuary estimates that the present value of the retroactive benefits related to this pension plan amounts to P400,000. The remaining service life of the covered active employees is 10 years. Relevant data for 20x6 to 20x9 are as follows: 20x6 20x7 20x8 20x9 Current service cost P68,000 P100,000 P200,000 P210,000 Expected settlement rate 8% 10%. 12% 5% Funding made at December 31 P150,000 P165,000 P146,000 P300,000 Expected rate of return 10% 14% 10% Actual return on plan assets (PA) P15,000 Market value of PA at December 31 P330,000 P500,000 P825,000 Actuarial DBO at December 31 P650,000 P1,000,000 P1,200,000 Benefits paid to employees during 20x9 amounts to P100,000 NOTE: DBO = Defined Benefit Obligation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

17th edition

1119503663, 1119571480, 1-119-50368-2, 111950368X, 978-1119503668

More Books

Students also viewed these Accounting questions

Question

8. What values do you want others to associate you with?

Answered: 1 week ago