Reference no: EM132884241
Question - On January 1, 2021, S Co. has the following data relating to its defined benefit plan:
Fair value of plan assets 2,000,000
Defined benefit obligation 3,600,000
Deficit (1,600,000)
During the year 2021, S Co. recognized the following:
Past service cost 600,000
Current service cost 1,400,000
Benefits paid during the period 720,000
Actual Return on plan assets 160,000
Contributions to the fund 800,000
Actuarial loss due to increase in DBO 200,000
Discount rate 10%
1. How much is the net Interest expense (or income)-P&L during 2021?
a. Nil
b. 200,000
c. 360,000
d. 160,000
2. How much is the defined benefit cost to be recognized in the profit or loss in 2021?
a. 2,400,000
b. 2,160,000
c. 2,360,000
d. 2,000,000
3. How much is the defined benefit cost to be recognized in the other comprehensive income in 2021?
a. Nil
b. 2,160,000
c. 240,000
d. 2,400,000