Reference no: EM133113727

Question - Ramon, Inc. is committed to close a factory in 10 months and shall terminate the employment of all the remaining employees of the factory. Under the termination plan, an employee leaving before closure of factory shall receive on termination date a cash payment of P20,000. However, an employee that renders service until closure of the factory shall receive P60,000. There are 120 employees at the factory. The entity expects 20 employees to leave before closure and 100 employees to render service until closure. What amount should be recognized as termination benefit?