Question
Carla Vista Limited sponsors a defined benefit pension plan for its employees, which it accounts for under ASPE. The following data relate to the operation
Carla Vista Limited sponsors a defined benefit pension plan for its employees, which it accounts for under ASPE. The following data relate to the operation of the plan for the year 2020:
1.
The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,800.
2.
The company's funding policy requires a contribution to the pension trustee of $145,900 for 2020.
3.
As at January 1, 2020, the company had a defined benefit obligation for accounting purposes of $930,000. The fair value of pension plan assets was $620,000 at the beginning of the year. The actual return on plan assets was $53,000, and the discount rate was 9%.
4.
No benefits were paid in 2020.
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