THE GO COMPANY

The record of Go Company for its defined benefit plan shows the following balances:

Plan assets, January 1, 2X16 P5,000,000

Defined benefit obligation, January 1, 2X16 5,800,000

2X16 information:

Current service cost 800,000

Discount rate 10%

Contributions made 1,850,000

Benefits paid 440,000

Past service cost as a result of a plan amendment 2,800,000

Plan assets, at fair value, December 31, 2X16 7,710,000

Defined benefit obligation, remeasured at December 31, 2X16 9,600,000

Required:

Using defined benefit plan worksheet, compute for the following:

1. Retirement benefit expense to be reported in profit or loss section;
2. Remeasurement of defined benefit liability (net actuarial gain) in other comprehensive income; and
3. Defined benefit liability in statement of financial position.