Reference no: EM132896964
Question - The following defined benefit pension data of Carla Vista Corp. apply to the year 2020:
Defined benefit obligation, funding basis, 1/1/20 (before amendment) $419,000
Plan assets, 1/1/20 408,600
Net defined benefit liability, 1/1/20 10,400
On January 1, 2020, Carla Vista Corp., through a plan amendment, granted prior service benefits having a present value of 53,300
Interest/discount rate 9%
Annual pension service cost 43,500
Contributions (funding) 41,400
Actual return on plan assets 39,300
Benefits paid to retirees 30,100
The company applies ASPE and has made an accounting policy choice to base its actuarial valuation of the DBO on the funding basis.
New attempt is in progress. Some of the new entries may impact the last attempt grading.
Your answer is partially correct.
Required -
1. Prepare a continuity schedule for the DBO for 2020.
2. Prepare a continuity schedule for the plan assets for 2020.
3. Prepare the entry to record the expense.
4. Calculate the balance of the net defined benefit liability/asset at December 31, 2020.
5. Identify the plan's surplus or deficit at December 31, 2020.