Crane Corporation reports the following January 1, 2020 balances for its defined benefit pension plan, which it
Question:
Crane 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 | $36,400 | $43,700 | $58,400 |
Discount rate | 10% | 10% | 10% |
Actual return on plan assets | 38,700 | 50,410 | 53,800 |
Funding of current service cost | 36,400 | 43,700 | 58,400 |
Funding of past service cost | – | 66,000 | 80,000 |
Benefits paid | 31,000 | 37,510 | 48,300 |
Past service cost (plan amended, 1/1/21) | 364,000 | ||
Change in actuarial assumptions establishes a December 31, 2022 defined benefit obligation of | 1,196,000 |
Prepare and complete a pension work sheet for 2020.
Crane Corporation Pension Worksheet for 2020 | ||||||||||||||||||
Remeas. Gain/ Loss OCI | Pension Expense | Cash | Net Defined Benefit (Liab) Asset | DBO | Plan Assets |
Prepare a continuity schedule of the projected defined benefit obligation over the three-year period
Prepare a continuity schedule of the plan assets over the three-year period.
Determine the pension expense for each of 2020, 2021, and 2022.
Prepare the journal entries to reflect the pension plan transactions and events for each year.
Prepare a schedule reconciling the pension plan’s surplus or deficit with the pension amounts reported on the SFP over the three-year period.
Determine the pension expense for each of 2020, 2021, and 2022 assuming that the company applies ASPE.
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield