Question

P19.3 D'Eon Corporation reports the following January 1, 2020 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows:    2020    2021    2022 Annual service cost $36,800 $ 43,700 $ 59,800 Discount rate 10% 10% 10% Actual return on plan assets 39,100 50,370 55,200 Funding of current service cost 36,800 43,700 59,800 Funding of past service cost — 69,000 80,500 Benefits paid 32,200 37,720 48,300 Past service cost (plan amended, 1/1/21) 368,000 Change in actuarial assumptions establishes a  December 31, 2022 defined benefit obligation of 1,196,000 Instructions a. Prepare and complete a pension work sheet for 2020. b. Prepare a continuity schedule of the projected defined benefit obligation over the three-year period. c. Prepare a continuity schedule of the plan assets over the three-year period. d. Determine the pension expense for each of 2020, 2021, and 2022. e. Prepare the journal entries to reflect the pension plan transactions and events for each year. Round to the nearest dollar. f. Prepare a schedule reconciling the pension plan's surplus or deficit with the pension amounts reported on the SFP over the three-year period. g. Determine the pension expense for each of 2020, 2021, and 2022 assuming that the company applies ASPE. h. What information would a potential investor be most interested in relative to a company's pension plan?

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