Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Crane Corporation provides the following information about its defined benefit pension plan for the year 2020: Current service cost$226,300Contribution to the plan263,800Past service cost, effective
Crane Corporation provides the following information about its defined benefit pension plan for the year 2020:
Current service cost$226,300Contribution to the plan263,800Past service cost, effective December 31, 202026,300Actual return on plan assets160,000Benefits paid113,000Net defined benefit liability at January 1, 2020401,300Plan assets at January 1, 20201,600,000Defined benefit obligation at January 1, 20202,001,300Interest/discount rate on the DBO and plan assets10%
Crane follows IFRS.
Required:
- Prepare continuity schedule for 2020 for the defined benefit obligation. (3 marks)
- Prepare continuity schedule for 2020 for the plan assets. (3 marks)
- Calculate pension expense for the year 2020. (3 marks)
- Prepare ll pension journal entries recorded by Crane in 2020. (3 marks)
- What pension amount will appear in crane's SFP at December 31, 2020? (3 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started