What is the employee benefit expense on december

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Q1. At the beginning of 2020, VIXEN Company leased an equipment with the following information: Annual rental payable at the end of each year 450,000; residual value guarantee 50,000; Lease incentive received 20,000; Lease term 4 years; Useful life of the equipment 8 years; implicit interest rate 10%; present value of an ordinary annuity of 1 at 10% for 4 periods 3.17; present value of 1 at 10% for 4 periods 0.68. What is the cost of right of use asset?

Q2. On January 1, 2021 COMET Company provided the following data in connection with the defined benefit plan: Fair value of plan assets - 6,700,000; Projected benefit obligation - 7,600,000. The accountant revealed the following information for the current year: Current service cost - 1,750,000; Past service cost - 300,000; Discount rate - 10%; Expected return on plan assets - 12%; Actual return on plan assets - 500,000; Contributions to the plan - 2,000,000; Benefit paid to retirees - 1,250,000. What is the employee benefit expense on December 31, 2021?

Reference no: EM133096046

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