Reference no: EM132946516
Information on Bates Corp.'s defined benefit plan follows:
Fair value of plan assets, January 1- P1,620,000
Present value of defined benefit obligation, January 1- P1,800,000
Vested past service cost- P180,000
Unvested past service cost (vesting period is 5 years)- P270,000
Current service cost- P540,000
Benefits paid to retirees during the year- P360,000
Net loss on settlement of plan during the year- P45,000
Actuarial gains during the period- P18,000
Return on plan assets during the period- P108,000
Discount rate-11%
Problem 1: How much is the defined benefit cost for the period?