1. Milky Way Company had the following balances relating to the defined benefit plan at year-end:

Fair value of plan assets- P37,000,000

Benefit obligation- P33,000,000

Asset ceiling- P2,500,000

What is the prepaid benefit cost at the year-end?

2.Mars Company had a noncontributory defined benefit pension plan. On December 31, 2021, the entity received the defined benefit obligation report from the independent actuary. 

Benefits paid- P135,000

Benefit obligation, Dec. 31, 2021- P2,160,000

Interest expense- P120,000

Discount rate- 8%

Requirements

What is the current service cost for 2021?