Sandhill Corporation initiated a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company that administers the pension plan provides the following information for the years 2020, 2021, and 2022:

For Year Ended December 31 2020 2021 2022

Plan assets (fair value) $51,000 $86,000 $169,000

Defined benefit obligation 62,900 ? ?

Net actuarial (gain) loss: DBO 8,900 (24,500) 84,500

Remeasurement (gain) loss: fund assets ? ? (15,120)

Employer's funding contribution 51,000 60,000 95,000

(made at end of year)

There were no balances as at January 1, 2020, when the plan was initiated, because no credit was given for past service. The rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $54,000; 2021, $86,000; and 2022, $119,000. No benefits were paid in 2020, but $30,000 was paid in 2021, and $34,000 in 2022. (All benefits were paid and all actuarial gains and losses were determined at the end of the year.) The company applies IFRS.

Required:

• Prepare continuity schedule for the defined benefit obligation over the three-year period.
• Prepare continuity schedule for the plan assets over the three-year period.
• Calculate the amount of net periodic pension expense that the company will recognize in each of 2020, 2021, and 2022
• Prepare and complete pension work sheet for each of 2020, 2021, and 2022.
• Determine the plan : surplus or deficit at December 31, 2022, and the balance of the Net Defined Benefit Liability/Asset account that will be reported on the December 31, 2022 balance sheet.