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Question 6 (9 marks) On January 1, 2021, Tucker, Inc. initiated a noncontributory, defined-benefit pension plan and amended the pension plan to grant employees past
Question 6 (9 marks) On January 1, 2021, Tucker, Inc. initiated a noncontributory, defined-benefit pension plan and amended the pension plan to grant employees past service benefits with a present value of 4,030,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year 1,200,000 Service cost 500,000 Defined benefit obligation 4,771,800 Plan assets (at fair value) 1,200,000 Discount rate 6% Instructions (a) Compute the pension expense recognized in 2021. (4 marks) (b) Prepare the journal entries to reflect accounting for the company's pension plan for the year ended December 31, 2021. (3 marks) (c) Indicate the amounts that are reported on the income statement and the statement of financial position for 2021. (2 marks)
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