Reference no: EM132890314
Question - On January 1, 2021, Campos Co. has the following data relating to its defined benefit plan:
Fair value of plan assets 6,000,000
Defined benefit obligation 5,000,000
Surplus 1,000,000
During the year 2021, Campos Co. recognized the following:
Past service cost 400,000
Current service cost 500,000
Benefits paid during the period 300,000
Actual Return on plan assets 680,000
Contributions to the fund 1,200,000
Actuarial gain due to decrease in DBO - Actuarial loss due to increase in DBO 160,000
Discount rate 10%
The present values of economic benefits available in the form of refunds from the plan are 800,000 and 900,000 on January 1, 2021 and December 31, 2021, respectively.
Based on the above data, answer the following:
1. How much is the net Interest expense (or income)-P&L during 2021?
a. (20,000)
b. 80,000
c. 500,000
d. 600,000
2. How much is the defined benefit cost to be recognized in the profit or loss in 2021?
a. 820,000
b. 1,100,000
c. 1,420,000
d. 920,000
3. How much is the defined benefit cost to be recognized in the other comprehensive income in 2021?
a. 80,000
b. 280,000
c. 1,100,000
d. Nil