Reference no: EM133042874
Question - Q1. 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%
How much is the defined benefit cost for the period?
Q2. At the beginning of the current year, Permission to Dance Co. reported P1,750,000 of appropriated retained earnings for the construction of the newbuilding which was completed late in the current year. For the current year, P1,200,000 was appropriated for plant expansion. P1,500,000 cash was restricted for the retirement of bonds payable. Also, the company acquired treasury shares for a total cost of P500,000.
On December 31 of the current year, the entity should report appropriated retained earnings of?