P20.1 (LO 2, 4, 5) (2-Year Worksheet) On January 1, 2022, Harrington SA has the following defined benefit pension plan balances. Defined benefit obligation €4,500,000 Fair value of plan assets 4,200,000 The interest rate applicable to the plan is 10%. On January 1, 2023, the company amends its pension agreement so that past service costs of €500,000 are created. Other data related to the pension plan are as follows. 2022 2023 Service cost €150,000 €180,000 Contributions (funding) to the plan 240.000 285.000

P20.1 (LO 2, 4, 5) (2-Year Worksheet) On January 1, 2022, Harrington SA has the following defined benefit pension plan balances. Defined benefit obligation €4,500,000 Fair value of plan assets 4,200,000 The interest rate applicable to the plan is 10%. On January 1, 2023, the company amends its pension agreement so that past service costs of €500,000 are created. Other data related to the pension plan are as follows. 2022 2023 Service cost €150,000 €180,000 Contributions (funding) to the plan 240.000 285.000

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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Current Attempt in Progress Sheridan Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary provided the following information: Pension plan assets (fair value) Defined benefit obligation $1,020,000 1,410,000 The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to $214,000, the December 31, 2023 defined benefit obligation was $1,831,200, and the appropriate interest or discount rate was 9%. The plan assets generated a return of $84,600 during 2023. The company funded the 2023 current service cost as well as $106,100 of the past service costs recognized in a previous year; however, no benefits were paid during the year. Sheridan is a private company and applies ASPE. (a) Prepare a schedule that indicates what the plan's surplus or deficit is at December 31, 2023. $
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