P19.4 The following information is available for HTM Corporation's defined benefit pension plan: 2020 2021 2022 Defined benefit obligation, opening balance, accounting basis $175,000 ? ? Fair value of plan assets 165,000 ? ? Current service cost 35,000 $47,250 $52,500 Discount rate 7% 7% 7% Actual return earned on plan assets 8% 6% 7% Contributions (funding) 44,000 44,000 44,000 Benefits paid to retirees 24,000 26,000 28,000 On January 1, 2020, HTM Corp. amended its pension plan, resulting in past service costs with a present value of $78,000. Instructions a. Calculate the pension plan's surplus or deficit and the pension liability or asset reported on the December 31, 2020, 2021, and 2022 statements of financial position assuming that HTM Corp. accounts for its pension plan under ASPE. Round to the nearest dollar. b. Calculate all the components, and the total pension expense for 2020, 2021, and 2022, assuming that HTM Corp. accounts for its pension plan under ASPE. c. Identify the pension plan's surplus or deficit and the pension liability or asset reported on the December 31, 2020, 2021, and 2022 statements of financial position assuming that HTM Corp. accounts for its pension plan under IFRS. d. Calculate pension expense and any remeasurement (gain) loss—OCI for 2020, 2021, and 2022 assuming that HTM Corp. accounts for its pension plan under IFRS. Round to the nearest dollar. e. Compare the results obtained in parts (b) and (d). Comment. Which method results in a better measure of expense over the three-year period? f. Which method results in a better measure of the plan surplus or deficit that is reported on the SFP?
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P19.4 The following information is available for HTM Corporation's defined benefit pension plan: 2020 2021 2022 Defined benefit obligation, opening balance, accounting basis $175,000 ? ? Fair value of plan assets 165,000 ? ? Current service cost
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...
The following information is in regards to Crane Corp.’s defined benefit pension plan. Defined benefit obligation, 1/1/17 (before amendment) $250,000 Plan assets, 1/1/17 168,000 Discount rate 10% Annual pension service cost 15,000 Actual return on plan assets 8,400 On January 1, 2017, the company amended its pension plan, which resulted in a reduction in prior service benefits for current employees. The present value of the reduced benefits is $34,000. 1. Calculate the pension expense that will be reported in net...
The following data relates to CheeseFactory Inc's pension plan for the year 2020: Defined benefit obligation at January 1, 2020 - $627,000 Fair value of plan assets at January 1, 2020 - $600,000 Current service cost - $82,000 Cost of past service benefits granted effective December 31, 2020 - $34,000 Actual return on plan assets - $70,000 Contributions to plan - $87,000 Benefits paid - $ 45,000 Actuarial loss - $39,000 Interest (discount) rate - 8% Instructions: (a) Prepare a...
The following information pertains to Rembrandt Inc.'s pension plan for calendar 2017: Defined benefit obligation at Jan 1/17................. $96,000 Interest (discount) rate...................................... 10% Current service costs......................................... $24,000 Pension benefits paid retirees............................ $20,000 The corporation uses IFRS. If no change in actuarial estimates occurred during 2017, Rembrandt's defined benefit obligation at December 31, 2017 would be (show your work) a) $85,600. b) $100,000. c) $105,600. d) $109,600. Presented below is information related to...
The following information is available for Wildhorse Corporation’s pension plan for the 2020 fiscal year: Defined benefit obligation, 1/1/20, accounting basis, before plan amendment $257,000 Fair value of plan assets, 1/1/20 329,000 Current service cost 63,200 Discount rate 14% Actual return on plan assets 12% Contributions (funding) 78,300 Benefits paid to retirees 43,200 On January 1, 2020, Wildhorse Corp. amended its pension plan, resulting in past service costs with a present value of $140,150. Wildhorse follows ASPE. (a) Calculate pension...
Sunland Corp. sponsors a defined benefit pension plan for its employees, on January 1, 2021, the following balances related to this plan. Plan assets (fair value) $630,000 Projected benefit obligation 680,000 Pension asset/liability 50,000 Gr. Prior service cost 83,000 OCI - Loss 73,000 As a result of the operation of the plan during 2021, the actuary provided the following additional data at December 31, 2021. Service cost for 2021 $78,000 Actual return on plan assets in 2021 45,260 Amortization of...
QUESTION 5 Bathworks Corp. has a defined benefit pension plan covering its 75 employees. Bathworks agrees to amend its pension benefits as of January 1, 2020. As a result, the projected benefit obligation increased by $2,475,000. Bathworks projects that 20% of its current employees will turnover each of the next five years (i.e., Bathworks expects to have all 75 of its current employees for 2020, but only 60 remaining for 2021, 45 for 2022, 30 for 2023, and 15 for...
P19.12 You are the auditor of Beaton and Gunter Inc., the Canadian subsidiary of a public multinational engineering company that offers a defined benefit pension plan to its eligible employees. Employees are permitted to join the plan after two years of employment, and benefits vest immediately. You have received the following information from the fund trustee for the year ended December 31, 2020: Discount rate 5% Rate of compensation increase 3.5% Defined Benefit Obligation Defined benefit obligation at January 1,...
Ayayai Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $26,800 Cr. Accumulated benefit obligation (December 31) 397,500 Actual and expected return on plan assets 10,900 Contributions (funding) in 2020 150,200 Fair value of plan assets (December 31) 793,000 Settlement rate 10% Projected benefit obligation (January 1) 699,000 Service cost 79,300 Indicate the pension-related amounts that would be reported in the company's income statement and balance sheet for 2020. Ayayal...
Pharoah Company provides the following information about its defined benefit pension plan for the year 2020. $90.600 Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2020 Projected benefit obligation at January 1.2020 Accumulated OCIEPS Manuary 1, 2020 Interesscount settimate 103.000 10.100 63.100 39.00 100 710,600 149.400 Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enteral amounts as positive PAROAH...