The following defined benefit pension data of Dahl Corp. apply to the year 2023:

The company applies ASPE and has made an accounting policy choice to base its actuarial valuation of the DBO on the funding basis.

Instructions

a. Prepare a continuity schedule for the DBO for 2023.

b. Prepare a continuity schedule for the plan assets for 2023.

c. Calculate defined benefit expense for 2023 and prepare the entry to record the expense. Round to the nearest dollar.

d. Calculate the balance of the net defined benefit liability/asset at December 31, 2023.

e. Identify the plan’s surplus or deficit at December 31, 2023. Compare it with the balance of the pension asset or liability reported on the balance sheet at the same date.

f. Identify what disclosures are required for defined benefit expense on the income statement, and briefly explain why these disclosures are required.

Transcribed Image Text:

Defined benefit obligation, funding basis, 1/1/23 (before amendment) Plan assets, 1/1/23 Net defined benefit liability, 1/1/23 On January 1, 2023, Dahl, through a plan amendment, granted prior service benefits having a present value of Interest/discount rate Annual pension service cost Contributions (funding) Actual return on plan assets Benefits paid to retirees $420,000 409,650 10,350 60,000 9% 43,500 41,250 39,210 35,000