Reference no: EM132800268
Problem - The following information was extracted from the records of NCPAR Company on December 31 of the current year. Assume the differences are temporary in nature:
|
|
Tax Return
|
Accounting Record
|
|
Depreciation
|
150,000
|
50,000
|
|
Rent Income
|
200,000
|
220,000
|
|
Warranty Expense
|
100,000
|
-
|
|
Gross income on installment sales
|
200,000
|
130,000
|
|
Provision for doubtful accounts
|
-
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30,000
|
|
Annual leave expense
|
400,000
|
350,000
|
|
Rent revenue
|
110,000
|
130,000
|
Pretax accounting income is P6,000,000.
On January 1, 2018, Lopez Company has the following data relating to its defined benefit plan:
Fair value of plan assets P2,000,000
Defined benefit obligation 1,400,000
Surplus 600,000
During the year 2018, Lopez Co. recognized the following:
Past service cost 350,000
Current service cost 600,000
Benefits paid during the period 230,000
Actual return on plan assets 300,000
Contributions to the fund 600,000
Actuarial loss due to increase in DBO 80,000
Discount rate 12%
Required -
1. How much is the gain on debt restructuring to be recognized by Sarangani?
2. Compute for NCPAR's taxable income and net income.
3. Compute for NCPR's current tax expense or payable.
4. Compute for NCPAR's deferred tax liability and deferred tax asset.
5. In Lopez Company, how much is the fair value of plan assets as of December 31, 2018?
6. In Lopez Company, how much is the defined benefit obligation as of December 31, 2018?
7. In Lopez Company, how much is the net interest expense (income) during 2018?. In Lopez Company, how much is the defined benefit cost to be recognized in the profit or loss and statement of comprehensive income, respectively, in 2018?