Watermelon Inc., a company that adheres to IFRS in its accounting and reporting practice, provides a defined benefit pension plan to its employees. The following information is available at for Year 1 (amounts in thousands): PV of defined benefits obligations, beginning of year Fair value of plan assets, beginning of year PV of defined benefits obligations, end of year $1,625,000 1,878,500 2,000,000 2,312,500 Fair value of plan assets, end of year PV of reductions in future contributions, end of year Service cost, current year Actuarial gain, current year Actual return on plan asset, current year Effective yield on high quality corporate bonds, current year 5% What is the amount of defined benefits cost to be reported as part of Watermelon's net income for Year 1: 350,000 118,000 19,000 130,000

Watermelon Inc., a company that adheres to IFRS in its accounting and reporting practice, provides a defined benefit pension plan to its employees. The following information is available at for Year 1 (amounts in thousands): PV of defined benefits obligations, beginning of year Fair value of plan assets, beginning of year PV of defined benefits obligations, end of year $1,625,000 1,878,500 2,000,000 2,312,500 Fair value of plan assets, end of year PV of reductions in future contributions, end of year Service cost, current year Actuarial gain, current year Actual return on plan asset, current year Effective yield on high quality corporate bonds, current year 5% What is the amount of defined benefits cost to be reported as part of Watermelon's net income for Year 1: 350,000 118,000 19,000 130,000

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 3P

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