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Question - At the beginning of the current year, KitKat Co. announced the decision to close the factory located in Cebu and terminate all 200 employees as a result of economic downturn. The entity shall pay P20,000 per employee upon termination. However, to ensure that the windup of the factory occurs smoothly and all remaining customer orders are completed, the entity needs to retain at least 20% of the employee until closure of the factory until three months. As a result, the entity announced the employee who agree to stay until the closing of the factory shall receive P60,000 payment at the end of third month in addition to receiving their current wage throughout the period of closure instead of the P20,000. Based on this offer, the entity expected to retain 50 employees until the factory is close. What is the amount of termination benefit?
stegner inc. reported net income of 130000 for the year ended december 31 2008. the following items were included on
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