Oyster Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Oyster's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation $3,726,000 Pension Plan Assets $3,726,000 On July 1, 2020, Oyster acquired the operations of Latch Ltd. As one of the conditions of the purchase, Oyster agreed that Latch's employees would be included in Oyster's defined benefit pension plan and would be granted credit for the past service of Latch's employees. The actuary estimated the value of the prior service amount granted on July 1, 2020, to be $202,000. Oyster's actuary provided the following information on December 31, 2020: Current year service cost $913,000 Employer contributions for the year $964,000 Benefits paid to retirees $308,000 Actuarial increase in pension obligations $53,000 Discount rate 6% Actual return on assets 4% A) Prepare a pension worksheet for Oyster Corporation for the year ending December 31, 2020. B) Prepare the journal entry to record the pension expense for 2020.

Oyster Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Oyster's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation $3,726,000 Pension Plan Assets $3,726,000 On July 1, 2020, Oyster acquired the operations of Latch Ltd. As one of the conditions of the purchase, Oyster agreed that Latch's employees would be included in Oyster's defined benefit pension plan and would be granted credit for the past service of Latch's employees. The actuary estimated the value of the prior service amount granted on July 1, 2020, to be $202,000. Oyster's actuary provided the following information on December 31, 2020: Current year service cost $913,000 Employer contributions for the year $964,000 Benefits paid to retirees $308,000 Actuarial increase in pension obligations $53,000 Discount rate 6% Actual return on assets 4% A) Prepare a pension worksheet for Oyster Corporation for the year ending December 31, 2020. B) Prepare the journal entry to record the pension expense for 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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