Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sunland Corporation sponsors a defined benefit pension plan and reports under IFRS. On January 1, 2020, the company reported plan assets of $1,800 and a

Sunland Corporation sponsors a defined benefit pension plan and reports under IFRS. On January 1, 2020, the company reported plan assets of $1,800 and a defined benefit obligation of $1,900 (all amounts in thousands of dollars). During 2020, the current service cost was determined to be $162, the discount rate on the DBO and plan assets was 6%, while the actual return on the plan assets for the year was $99. Sunland made contributions of $166 into the plan at the end of the year and the benefits paid amounted to $115. The plan was amended effective December 31, 2020, with the cost of the past service benefits granted being $72.

Determine the deficit of the pension plan at January 1, 2020, and calculate its December 31, 2020 deficit balance directly, by identifying which 2020 pension events increased the deficit, which decreased it, and which had no effect. (Enter answer in thousands of dollars. Round answer to 0 decimal places, e.g. 5,275.)

Plan deficit, December 31, 2020?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Business Process Approach

Authors: Jane L Reimers

2nd Edition

131473867, 978-0131473867

More Books

Students also viewed these Accounting questions