Question 3

Question 3 (30 marks) HS Company sponsors a defined-benefit pension plan for its employees. Presented below are the balances related to this plan. Plan assets (fair value), Dec 31, 2019 $2,750,000 Defined benefit obligation, Dec 31, 2019 3,750,000 Accumulated other comprehensive income, Dec 31, 2019 0 Defined benefit obligation, Dec 31, 2020 4,700,000 The actuary provided the following additional data for the operation of the plan during 2020. Service cost for 2020 $ 500,000 Actual return on plan assets 260,000 Annual contribution to the plan 900,000 Past service cost, effective Jan. 1, 2020 105.000 Benefits paid to retirees 60,000 Discount rate 10% Requirement: Using the above information for HS Company, prepare the pension worksheet for 2020. (30 marks)