Manon Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2020 and 2021: 

The pension fund paid out benefits in each year. There were no actuarial gains or losses incurred on the DBO in the two-year period. 

Instructions 

a. Calculate pension expense for 2020 and 2021. 

b. Prepare all journal entries to record the pension expense and the company's pension plan funding for both years. 

c. Prepare the complete pension work sheets for Manon for 2020 and 2021. 

d. Prepare the required pension disclosure notes to the financial statements at December 31, 2021.

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2020 2021 Plan assets (fair value), December 31 $515,000 $642,000 Defined benefit obligation, January 1 600,000 700,000 Net defined benefit liability (asset), January 1 240,000 ? Current service cost 60,000 90,000 Actual return on plan assets 24,000 47,000 Funding of current service cost 60,000 90,000 Funding of past service costs Benefits paid 85,000 55,000 ? ? Interest/discount rate 9% 9%