Question 24

Nash Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Nash financial records indicated the following information related to the companys defined benefit pension plan:

Defined Benefit Obligation		$3,760,000
Pension Plan Assets		3,760,000

On July 1, 2020, Nash acquired the operations of Trap Ltd. As one of the conditions of the purchase, Nash agreed that Traps employees would be included in Nashs defined benefit pension plan, and would be granted credit for the past service of Traps employees. The actuary estimated the value of the prior service amount granted on July 1, 2020 to be $203,000. Nash actuary provided the following information on December 31, 2020:

Current year service cost		$893,000
Employer contributions for the year		881,000
Benefits paid to retirees		310,000
Actuarial increase in pension obligations		49,000
Discount rate		7%
Actual return on assets		5%

Nash pension plan is underfunded/overfunded by $_____?

on December 31, 2020.

Prepare a pension worksheet for Nash Corporation for the year ending December 31, 2020. Memo Record Remeasurement Gain/Loss OCI General Journal Entries Annual Pension Expense Net Defined Liability/ Asset Cash Defined Benefit Obligation Plan Assets Balance, January 1, 2020 Current Service Cost V Past Service Cost V Net Interest/Finance Cost V Asset Remeasurement Gain/Loss Actuarial Gain/Loss Employer Contributions to Pension Fund Benefits Paid to Retirees from Pension Fund Pension Expense Entry - 2020 Net Funding Entry Balance, December 31, 2020 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the pension expense for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit (To record pension expense) (To record payment to the pension fund)