Ivanhoe Limited is a publicly traded company on the Toronto Stock Exchange. The company sponsors a defined benefit pension plan for all of its employees, and the controller provides you with the following data that relate to the plan for fiscal 2023: 1. The actuary has determined that the actuarial present value of future benefits earned by employees for services rendered in the year amounted to $89,440. 2. The plan requires Ivanhoe to make a cash contribution of $182,000 to the plan assets for 2023. 3. On January 1, 2023, the company's defined benefit obligation was $1,071,200, and the fair value of pension plan assets was $988,000. The plan assets generated a return of $58,240 during the year, and Ivanhoe's discount rate was 8%. 4. Benefits of $78,000 were paid in 2023. 5. In late December 2023, an actuarial revaluation of the defined benefit obligation indicated an actuarial loss of $30,160.
Ivanhoe Limited is a publicly traded company on the Toronto Stock Exchange. The company sponsors a defined benefit pension plan for all of its employees, and the controller provides you with the following data that relate to the plan for fiscal 2023: 1. The actuary has determined that the actuarial present value of future benefits earned by employees for services rendered in the year amounted to $89,440. 2. The plan requires Ivanhoe to make a cash contribution of $182,000 to the plan assets for 2023. 3. On January 1, 2023, the company's defined benefit obligation was $1,071,200, and the fair value of pension plan assets was $988,000. The plan assets generated a return of $58,240 during the year, and Ivanhoe's discount rate was 8%. 4. Benefits of $78,000 were paid in 2023. 5. In late December 2023, an actuarial revaluation of the defined benefit obligation indicated an actuarial loss of $30,160.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ivanhoe Limited is a publicly traded company on the Toronto Stock Exchange. The company sponsors a defined benefit pension plan
for all of its employees, and the controller provides you with the following data that relate to the plan for fiscal 2023:
1.
The actuary has determined that the actuarial present value of future benefits earned by employees for services rendered in
the year amounted to $89,440.
2.
The plan requires Ivanhoe to make a cash contribution of $182,000 to the plan assets for 2023.
3.
On January 1, 2023, the company's defined benefit obligation was $1,071,200, and the fair value of pension plan assets was
$988,000. The plan assets generated a return of $58,240 during the year, and Ivanhoe's discount rate was 8%.
4.
Benefits of $78,000 were paid in 2023.
5.
In late December 2023, an actuarial revaluation of the defined benefit obligation indicated an actuarial loss of $30,160.
(a)
Determine the defined benefit expense that should be recognized by the company in 2023.
Defined benefit expense
$
Transcribed Image Text:B. Prepare the journal entries to record defined benefit expense and the company's funding of the pension plan in 2023.
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