At January 1, 2016, Wembley Company Had Plan Assets of €250,000

question 27

Multiple Choice

At January 1, 2016, Wembley Company had plan assets of €250,000 and a defined benefit obligation of the same amount.During 2016, service cost was €27,500, the discount rate was 10%, actual and expected return on plan assets were €25,000, contributions were €20,000, and benefits paid were €17,500.Based on this information what would be the defined benefit obligation for Wembley Company for 2016?

• A)€277,500
• B)€285,000
• C)€27,500
• D)€302,500

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Definitions:

Key Management Personnel

Individuals who have authority and responsibility for planning, directing, and controlling the activities of an entity, typically including the company’s directors and senior executives.

Significant Influence

The power to participate in the financial and operating policy decisions of an entity but is not control or joint control over those policies.

Subsidiary

A company that is controlled by another company, usually referred to as the parent company or holding company.