On January 1, 2015, Harrington Company has the following defined benefit pension plan balances. The interest (settlement)

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On January 1, 2015, Harrington Company has the following defined benefit pension plan balances.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2016, the company amends its pension agreement so that past service costs of €500,000 are created. Other data related to the pension plan are as follows.

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Instructions

(a) Prepare a pension worksheet for the pension plan for 2015 and 2016.

(b) For 2016, prepare the journal entry to record pension-related amounts

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Related Book For answer-question

Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Mar 23, 2024 08:03 AM

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On January 1, 2015, Harrington Company has the following defined benefit pension plan balances. The interest (settlement)

Question:

Defined benefit obligation Fair value of plan assets 4,500,000 4,200,000

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Intermediate Accounting IFRS Edition

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