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Question 1: Prepare a Pension Worksheet for 2020 based on the following data Current Service Cost $123,000 Contribution to the Plan $150,000 Past Service Cost
Question 1: Prepare a Pension Worksheet for 2020 based on the following data Current Service Cost $123,000 Contribution to the Plan $150,000 Past Service Cost effective January 01, 2020 $63,000 Actual Return on Plan Assets $111,000 Benefits Paid $50,000 Net Defined Benefit Liability at January 01, 2020 $213,000 Plan Assets at January 01, 2020 $1,077,000 Defined Benefit Obligation at January 01, 2020 $1,234,000 Interest/Discount Rate on the DBO and Plan Assets 9% 16 Marks) Question 2. At December 31, 2020, Helena Corporation had an estimated warranty liability of $128,000 for accounting purposes and so for tax purposes. The warranty costs are not deductible until they are paid. The tax rate is 20%, calculate the amount that Helena should report as a deferred tax asset at December 31,2020. 13 Marks! Question 3: On January 1, 2020, Brampton Corp., which uses IFRS 16, signs a 10-year, non-cancellable lease agreement to lease a specialty machine from Ajax Inc. The following information concerns the lease agreement 1. The agreement requires equal rental payments of 573.580 beginning on January 1, 2017 2. The machine's fair value on January 1, 2020 is $450,000 3. The machine has an estimated economic life of 12 years with an unguaranteed residual value of $12.000. Brampton Corp. depreciates similar equipment using the straight-line method 4. The lease is non-renewable. At the termination of the lease, the machine reverts to the lessor 5. Brampton's incremental borrowing rate is 12% per year. The lessor's implicit rate (s not known by Brampton Corp. 6. The yearly rental payment includes $2470 29 of executory costs related to insurance on the machine (a) Calculate the amount of the right-of-use asset and lease ability and prepare the initial entry to reflect the signing of the lease agreement. 3 Marks) (b) Prepare an amortization schedule for the term of the lease to be used by Brampton. 13 Marks) (c) Prepare the journal entries on Brampton Corp's books to record the payments and expenses related to this lease for the years 2020 and 2021. 3 Marks]
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