Problem
The following information relates to the define benefit obligation plan of ABC Company for the year 2021:
i. Defined benefit obligation, January 1 - P4,600,000
ii. Defined benefit obligation, December 31 - P4,929,000
iii. FV of plan assets, January 1 - P5,035,000
iv. FV of plan assets, December 31 - P5,565,000
v. Actuarial gain due to remeasurement of benefit obligation - P32,500
vi. Employer contributions - P425,000
vii. Benefits paid to retirees - P390,000
viii. Discount rate - 10%
1) How much is the Actual Return on Plan Assets?
2) How much is Defined Benefit Costs taken to Profit or Loss?
3) How much is the Service Cost?