Question
Wildhorse Limited sponsors a defined benefit pension plan, and follows ASPE. The corporations actuary provides the following information about the plan (in thousands of dollars):
Wildhorse Limited sponsors a defined benefit pension plan, and follows ASPE. The corporations actuary provides the following information about the plan (in thousands of dollars):
January 1, 2020 | December 31, 2020 | |||
---|---|---|---|---|
Vested benefit obligation | $1,300 | $1,500 | ||
Defined benefit obligation, accounting basis | 2,340 | 3,124 | ||
Plan assets (fair value) | 1,360 | 2,093 | ||
Interest/discount rate | 10% | 10% | ||
Net defined benefit liability/asset | ? | ? | ||
Past service cost, plan amendment, effective December 30, 2020 | 380 | |||
Service cost for the year 2020 | 320 | |||
Contributions (funding) 2020 | 680 | |||
Benefits paid in 2020 | 150 |
1)Calculate the actual return on the plan assets in 2020.
2)Calculate the amount of the net defined benefit liability/asset as at January 1, 2020.
3)Prepare a continuity schedule of the defined benefit obligation for 2020.
4)Calculate the pension expense for 2020, separately identifying each amount making up the total expense.
5)Prepare the pension-related entries made by the company during 2020.
6)Compare the plans surplus or deficit at December 31, 2020, with the amount reported on the December 31, 2020 balance sheet.
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