Reference no: EM132760554
Question - The following information is available for Blossom Corporation's pension plan for the 2020 fiscal year:
Defined benefit obligation, 1/1/20, accounting basis, before plan amendment $293,000
Fair value of plan assets, 1/1/20 319,000
Current service cost 63,600
Discount rate 11%
Actual return on plan assets 9%
Contributions (funding) 78,600
Benefits paid to retirees 42,600
On January 1, 2020, Blossom Corp. amended its pension plan, resulting in past service costs with a present value of $140,000. Blossom follows ASPE.
Required -
a. Calculate pension expense for 2020.
b. Have journal entries to record the expense and funding for the year.
c. Determine the balance of the net defined benefit liability/asset reported on the December 31, 2020 balance sheet.
d. Have a 2020 pension work sheet for Blossom Corporation.
e. Identify the December 31, 2020 plan surplus or deficit and compare it with the asset or liability reported on the December 31, 2020 balance sheet.
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