Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Corporation initiated a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company that administers the pension plan

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Crane Corporation initiated a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company that administers the pension plan provides the following information for the years 2020, 2021, and 2022: Plan assets (fair value) For Year Ended December 31 2020 2021 2022 $50,000 $86,000 $169,000 64,900 ? ? 8,900 (24,500 ) 84,500 ? ? (14,120 ) 60,000 95,000 Defined benefit obligation Net actuarial (gain) loss: DBO Remeasurement (gain) loss: fund assets Employer's funding contribution (made at end of year) 50,000 There were no balances as at January 1, 2020, when the plan was initiated, because no credit was given for past service. The rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $56,000; 2021, $86,000; and 2022, $116,000. No benefits were paid in 2020, but $29,000 was paid in 2021, and $33,000 in 2022. (All benefits were paid and all actuarial gains and losses were determined at the end of the year.) The company applies ASPE.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: Larson Kermit, Tilly Jensen

Volume I, 14th Canadian Edition

71051503, 978-1259066511, 1259066517, 978-0071051507

More Books

Students also viewed these Accounting questions

Question

What other benefits might you have expected to see listed here? L01

Answered: 1 week ago