How much would be the current service cost for the year

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Reference no: EM132740045

PV of benefit obligation, January 1P6,700,000PV of benefit obligation, December 317,200,000

Fair value of plan assets, January 17,500,000

Fair value of plan assets, December 317,900,000

Expected return on plan assets675,000

Amortization of deferred gain48,750

Employer contribution300,000

Benefits paid to retirees600,000

Settlement rate10%

Problem 1: How much would be the current service cost for the year?

Option 1: P430,000
Option 2: P193,500
Option 3: P141,000
Option 4: P88,500

Reference no: EM132740045

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