Berstler Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following information about the plan (in thousands of dollars): 

Instructions 

a. Calculate the actual return on the plan assets in 2020. 

b. Calculate the amount of the net defined benefit liability/asset as at January 1, 2020. 

c. Prepare a continuity schedule of the defined benefit obligation for 2020. 

d. Calculate the pension expense for 2020, separately identifying each amount making up the total expense. 

e. Prepare the pension-related entries made by the company during 2020. 

f. Compare the plan's surplus or deficit at December 31, 2020, with the amount reported on the December 31, 2020 balance sheet.

Transcribed Image Text:

January 1, 2020 December 31, 2020 Vested benefit obligation $1,200 $1,520 Defined benefit obligation, accounting basis 2,240 3,004 Plan assets (fair value) 1,360 2,096 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 640 Benefits paid in 2020 160