Reference no: EM133106550
Question 1 - The following information relates to the defined retirement benefit plan of Abrau Company as of December 31, 2021.
Net actuarial gain due to re-measurement of benefit obligation and plan assets taken to OCI P123,000
Prior service cost due to amendment of plan included in retirement benefit expense 443,000
Fair value of plan assets 2,557,000
Accrued benefit obligation 2,800,000
Required - What amount should be shown in Abray Company's statement of financial position at December 31, 2021 as Prepaid or Accrued Retirement Benefit Cost?
a. P243,000 accrued
b. P563,000 accrued
c. P323,000 prepaid
d. P77,000 prepaid
Question 2 - The reported pretax financial income of Aglubo Company is P1,800,000 and current income tax rate is 30%. Assume the following differences between the financial income and taxable income for the year:
a. Fines paid for late payment of taxes, P15,500
b. Premiums paid on life insurance policy on officers, P200,000. Beneficiary named in the policies is Aglubo Company.
c. Impairment loss recognized on goodwill, P90,000
d. Excess of tax depreciation over book depreciation, P30,000
e. Excess of warranty expense over actual expenditures, P27,000
f. Excess of estimated uncollectible accounts for financial reporting over the accounts actually written off for tax reporting, P12,000.
g. Rent collected in advance of period earned, P35,000.
Required - Determine the Deferred tax asset and deferred tax liabilities?
a. P9,000 and P22,200
b. P22,200 and P9,000
c. P11,700 and P19,500
d. P19,500 and P11,700