Crane Corporation reports the following January 1, 2020 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows:

	2020	2021	2022
Annual service cost	$36,400	$43,700	$58,400
Discount rate	10%	10%	10%
Actual return on plan assets	38,700	50,410	53,800
Funding of current service cost	36,400	43,700	58,400
Funding of past service cost	–	66,000	80,000
Benefits paid	31,000	37,510	48,300
Past service cost (plan amended, 1/1/21)		364,000
Change in actuarial assumptions establishes a December 31,  2022 defined benefit obligation of			1,196,000

Prepare and complete a pension work sheet for 2020.

Crane Corporation Pension Worksheet for 2020

Remeas. Gain/ Loss OCI

Pension Expense

Cash

Net Defined Benefit (Liab) Asset

DBO

Plan Assets

 
Prepare a continuity schedule of the projected defined benefit obligation over the three-year period

Prepare a continuity schedule of the plan assets over the three-year period.

Determine the pension expense for each of 2020, 2021, and 2022.

Prepare the journal entries to reflect the pension plan transactions and events for each year.

Prepare a schedule reconciling the pension plan’s surplus or deficit with the pension amounts reported on the SFP over the three-year period.

Determine the pension expense for each of 2020, 2021, and 2022 assuming that the company applies ASPE.