Reference no: EM133016932
Questions -
Q1. Angel Company reported the fair value plan assets at 7,000,000 and projected benefit obligation at 8,000,000. The entity revealed the following for the current year:
Current service cost 1,800,000
Past service cost 500,000
Discount rate 12%
Benefits paid to retirees 900,000
Contribution to the plan 1,300,000
Actual return on plan assets 650,000
What is the employee benefit expense?
a. 4,100,000 b. 1,920,000 c. 3,260,000 d. 2,420,000
Q2. On the year 2021, the records about the defined benefit plan showed the following:
Fair value of plan assets 6,000,000
Projected benefit obligation 7,250,000
During the current year, the following transactions are gathered:
Current service cost 1,500,000
Past service cost 800,000
Contribution to the plan 600,000
Actual return 750,000
Discount rate 12%
How much is the employee benefit expense?
a. 1,500,000 b. 1,670,000 c. 2,450,000 d. 1,350,000
Q3. Ozz Ltd. reported the following values at the beginning of the year:
PBO, January 1, 2021 10,000,000
FVPA, January 1, 2021 7,500,000
During the year, Ozz Ltd. made a lump sum payment to a plan participant in exchange for their rights to receive a certain post-employment benefit. The defined benefit obligation was Php 1,250,000 and the lump sum payment was Php1,000,000. In addition, the following were also provided
Current Service Cost 1,125,000
Contribution to the fund 875,000
Actual Return on Plan Assets 1,000,000
Discount Rate 10%
What amount of employee benefit expense should be recorded?
a. 625,000 b. 875,000 c. 1,125,000 d. 1,375,000