Dubel Toothpaste Corporation initiated a defined benefit pension plan for its 50 employees on January 1, 2011. The insurance company that administers the pension plan provides the following information for the years 2011, 2012, and 2013:

There were no balances as of January 1, 2011, when the plan was initiated. The long-term expected return on plan assets was 8% throughout the three-year period. The settlement rate that was used to discount the company€™s pension obligation was 13% in 2011, 11% in 2012, and 8% in 2013. The service cost component of net periodic pension expense amounted to the following: 2011, $55,000; 2012, $85,000; and 2013, $119,000. The average remaining service life per employee is 10 years. No benefits were paid in 2011, but $30,000 was paid in 2012, and $35,000 in 2013 (all benefits were paid at the end of the year). The company had elected to use the deferral and amortization approach under IFRS.
Instructions
Depending on what your instructor assigns, do either (a), (b), (c), (e), and (f); or (d), (e), and (f). (Round all answers to the nearest dollar.)
(a) Prepare a continuity schedule for the projected benefit obligation over the three-year period.
(b) Prepare a continuity schedule for the plan assets over the three-year period.
(c) Calculate the amount of net periodic pension expense that the company will recognize in each of 2011, 2012, and 2013.
(d) Prepare and complete a pension work sheet for each of 2011, 2012, and 2013.
(e) Determine the funded status at December 31, 2013, and the balance of the accrued pension asset or liability that will be reported on the December 31, 2013 balance sheet. Fully explain why these amounts differ.
(f) Discuss what options are available for Dubel Toothpaste Corporation in regards to accounting for any actuarial gains or losses.

2011 $50,000 63,900 8,900 For Year Ended December 31 2012 $ 85,000 (24,500) 60,000 2013 Plan assets (air value) Accrued benefit obligation Net actuarial (gain) loss re: ABO Net actuarial (gain) loss re: fund assets Employer's funding contribution (made at end of year 50,000 $170,000 84,500 (18,200 95,000