The following are made available for the defined benefit pension plan of Pores Corporation as of December 31, 2019: Fair value of Plan asset, Jan 1 Total actual return on plan asset Payment made to retirees Payment of pension benefit settled on active employees Contribution during the year P3,000,000 ? 600,000 400,000 500,000 Discount rate 6% a. What is the fair value of plan asset as of December 31, 2019? b. What amount of the total actual return on plan asset should be included in profit or loss? c. What amount of the total actual return on plan asset should be reported in other comprehensive income?

The following are made available for the defined benefit pension plan of Pores Corporation as of December 31, 2019: Fair value of Plan asset, Jan 1 Total actual return on plan asset Payment made to retirees Payment of pension benefit settled on active employees Contribution during the year P3,000,000 ? 600,000 400,000 500,000 Discount rate 6% a. What is the fair value of plan asset as of December 31, 2019? b. What amount of the total actual return on plan asset should be included in profit or loss? c. What amount of the total actual return on plan asset should be reported in other comprehensive income?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7RE

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