Calculate Crane pension expense

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Reference no: EM132758706

Problem - Crane Corp. provides a defined contribution pension plan for its employees. The plan requires Crane to contribute 5% of employees' gross pay to a fund trustee each year. Crane's total payroll for 2020 was $2,803,800. At the start of 2020, Crane revised the terms of the plan, which resulted in past service costs of $926,000. Crane expects to realize the economic benefits from the plan change for at least five years, beginning in 2020.

Required -

1. Calculate Crane's pension expense for 2020 assuming that the company follows IFRS.

2. Calculate Crane's pension expense for 2020 assuming that the company follows ASPE.

Reference no: EM132758706

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