Reference no: EM132952627
Questions -
Q1. The following are the balances related to a defined benefit plan of Sheraton Company on January 1, 2020.
Projected benefit obligation 7,000,000
Fair value of plan asset 6,250,000
The actuary provided the following data for the current year:
Current service cost 600,000
Settlement discount rate 10%
Expected return on plan assets 8%
Actual return on plan asset 700,000
Contribution to the plan 900,000
Benefit paid to retirees 100,000
1. What is the employee benefit cost?
a. 675,000
b. 600,000
c. 700,000
d. 650,000
2. What is the re-measurement gain on plan assets?
a. 75,000
b. 700,000
c. 125,000
d. 240,000
3. What is the defined benefit cost?
a. 300,000
b. 600,000
c. 900,000
d. 675,000
4. What is the prepaid/accrued benefit cost on December 31?
a. 400,000 prepaid
b. 400,000 accrued
c. 450,000 prepaid
d. 450,000 accrued
Q2. Globe Company reported profit before tax of P 6,000,000 and income tax expense of P1,000,000 for the current year. In addition, the entity paid during the year an ordinary dividend of P500,000 and a preference dividend of P500,000 on the redeemable preference shares. The entity had P2,000,000 of P10 par value ordinary shares in issue.
1. What amount should be reported as basic earnings per share for the year?
a. 25
b. 21.50
c. 20
d. 23.5