At January 1, 2020, Van Gogh Corp.'s defined benefit pension plan, under IFRS, had a defined benefit obligation of $ 100,000, while the fair value of the plan assets was $ 120,000. During 2020, the plan's current service cost was $ 150,000; past service costs were $ 80,000; Van Gogh contributed $ 110,000 to the plan; the actual and expected return on the plan assets was $9,000; and benefits paid to retirees were $ 95,000. If the net interest cost was $10,000, what is the defined benefit obligation at December 31, 2020? A) $ 110,000 OB) $144,000 C) $ 235,000 D) $254,000
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- Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $480,000 Projected benefit obligation 650,000 Pension asset/liability 170,000 Cr. Prior service cost 80,000 Net gain or loss (debit) 85,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $99,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 42,000 Amortization of prior service cost 25,000 Contributions 124,000 Benefits paid retirees 82,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Blossom Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense PICTURE BELOW FOR REFERENCE:Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $480,000 Projected benefit obligation 650,000 Pension asset/liability 170,000 Cr. Prior service cost 80,000 Net gain or loss (debit) 85,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $99,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 42,000 Amortization of prior service cost 25,000 Contributions 124,000 Benefits paid retirees 82,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Blossom Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) PLEASE FIX THE INCORRECT…On January 1, 2022, Seascape Ltd. reported the following balances relating to their defined benefit pension plan. Seascape Ltd. uses ASPE. Defined benefit obligation $ 2,100,000 Fair value of plan assets. 1,900,000 Other data related to the pension plan for 2022 are: Current service cost 110,000 Contributions to the plan 105,000 Benefits paid.. 180,000 Actual return on plan assets. 142,000 Interest (discount) rate 7% Past service costs, Jan 1 120,000 Actuary adjustment, Dec 31 220,000 Pension Asset/Liability account on Balance Sheet Instructions a) Calculate the defined benefit obligation at December 31, 2022. b) Calculate the fair value of plan assets at December 31, 2022. c) Calculate pension expense for 2022. d) Prepare the journal entries to record the pension expense and the contributions for 2022. e) How would your answer be different if the company used IFRS? f) What is the funded status of the plan on December 31, 2022? Indicate whether it is underfunded or overfunded.
- Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr. Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Use the market-related…Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr. Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)Sabriina Consultants Inc. has had a defined benefit pension plan since January 1, 2016. The following represents beginning balances as at January 1, 2020: Market value of Plan Asset $1,155,300; Defined Benefit Obligation $1,375,000; AOCI: Loss of $305,000 Additional Information is as follows: Current Service cost is $196,000 for 2020 and $199,000 for 2021. Company Funding/Contribution is $195,000 for 2020 and $205,000 for 2021. Funding is made on December 31 of each year. Actual return on assets is $49,500 for 2020 and $51,500 for 2021. There is an increase in obligation for $26,000 due to changes in Actuarial assumptions at Dec 31, 2020. There are payments made equal to $85,000 per year to retired employees in both 2020 and 2021 (payments to retirees are made at the end of the year on December 31). Past service cost of $65,900 from plan amendment dated December 31, 2021: liability is increased because benefits were increased on a retroactive basis. For 2020, the…
- Sheridan, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2021. Service cost $ 395000 Contributions to the plan 380000 Actual return on plan assets 320000 Projected benefit obligation (beginning of year) 3850000 Fair value of plan assets (beginning of year) 2650000 The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2021 is $395000. $515000. $335000. O $780000.Vernhey Corporation, which follows ASPE, provides the following information about its defined benefit pension plan for the year 2020: Current service cost Contribution to the plan Past service cost, effective December 31, 2020 Actual return on plan assets Benefits paid Net defined benefit liability at January 1, 2020 Plan assets at January 1, 2020 Defined benefit obligation at January 1, 2020 Interest/discount rate on the DBO and plan assets $144,000 182,600 60,000 160,000 95,000 20,000 1,780,000 1,800,000 9% Instructions 1 Prepare a pension work sheet: insert the January 1, 2020 balances and show the December 31, 2020 balances. Indicate credit entries by parentheses, e g. (25,000). b) Prepare all journal entries. c) What is the amount of the plan's surplus/deficit at December 31, 2020?On December 31, 2019, Berry Company determined that the 2019 service cost on its defined benefit pension plan was $140,000. At the beginning of 2019, Berry had pension plan assets of $510,000 and a projected benefit obligation of $700,000. Its discount rate (and expected long-term rate of return on plan assets) for 2019 was 10%. There are no other components of Berry's pension expense; the company had an accrued/prepaid pension cost liability at the end of 2018. Required: 1. Compute the amount of Berry's pension expense for 2019. 2. Prepare the journal entry to record Berry's 2019 pension expense if it funds the pension plan in the amount of (a) $159,000 and (b) $140,000.
- Helv Industries sponsors a defined-benefit pension plan for its employees. As of January 1, 2020, the pension plan reported a Projected Benefit Obligation of $1,334,000 and fair value of Plan Assets of $996,000. Helv also reports the following as of January 1, 2020: Dr (Cr) Net pension asset/liability $ (338,000) Accumulated other comprehensive income (AOCI) Prior service cost $ 100,000 Gains/Losses $ - Additionally, the following information is available for 2020: Service cost $ 306,000 Actual return of plan assets $ 55,000 Amortization of prior service costs $ 5,000 Benefits paid to retirees $ 420,000 Contributions to the plan $ 285,000 Discount…Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (fair value) $2,200,000 Projected benefit obligation 2,400,000 Pension asset/liability 200,000 Cr. Prior service cost 300,000 OCI – Loss 260,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data at December 31, 2020. Service cost for 2020 $280,000 Actual return on plan assets in 2020 180,000 Amortization of prior service cost 60,000 Contributions in 2020 460,000 Benefits paid retirees in 2020 320,000 Settlement rate 7% Expected return rate 8% Average remaining service life of active…At the end of 2020, the balances in the accounts related to the defined benefit pension plan of the Norton Company were as follows: Projected benefit obligation 690,000 Unrecognized prior service cost (remainder to be amortized over 12 years) 37,750 Unrecognized net loss 123,000 Plan assets (at fair value) 722,625 On 1/1/21, Norton amended the plan to provide an increased amount of pension benefits; the prior service cost resulting from this amendment was $45,500. At 1/1/21, the average remaining service life of employees expected to receive benefits was 10 years. The following information relates to the year 2021: Service Cost 70,625 Settlement rate 5% Expected rate of return on plan assets 4% Plan contribution (at year-end) 103,500 Benefit payments to retirees (at year-end) 90,750 In 2021, Norton’s actual return on plan assets was $27,500. Norton follows a policy of recognizing gains/losses on a delayed basis using the "corridor approach". At the end of 2021, there was one change in…