Reference no: EM132877569
Question - The following facts apply to the pension plan of Cullumber Inc. for the year 2020. Cullumber applies ASPE.
Plan assets, January 1, 2020 $514,000
Defined benefit obligation, funding basis, January 1, 2020 412,000
Defined benefit obligation, accounting basis, January 1, 2020 514,000
Discount/interest rate 8.50%
Annual pension service cost 40,600
Contributions 31,000
Actual return on plan assets 52,040
Benefits paid to retirees 33,800
Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Cullumber has chosen the funding measure of its defined benefit obligation as its accounting policy choice.