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On January 1, 2023, Lillibet Ltd. reported the following balances relating to its defined benefit pension plan: Dec. 31, 2023 Jan. 1, 2023 Defined benefit
| On January 1, 2023, Lillibet Ltd. reported the following balances relating to its defined benefit pension plan: | |||||||
| Dec. 31, 2023 | Jan. 1, 2023 | ||||||
| Defined benefit obligation | $1,291,000 | $1,200,000 | |||||
| Fair value of plan assets | 1,266,000 | 1,170,000 | |||||
| Current service cost | $95,000 | ||||||
| Contributions to the plan | 104,000 | ||||||
| Benefits paid | 100,000 | ||||||
| Actual return on plan assets | (b) | ||||||
| Interest (discount) rate | (a) | ||||||
| Defined benefit expense | (c) | ||||||
| Instructions | |||||||
| a) | Calculate the discount rate. | ||||||
| b) | Calculate the actual return on plan assets. | ||||||
| c) | Calculate the defined benefit expense for 2023. | ||||||
| d) | Prepare the journal entries to record the defined benefit expense and the contributions for 2023. | ||||||
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