Cullumber Corporation is a privately-owned company that follows ASPE. On December 31, 2022, Cullumber's financial recordsindicated the following information related to the company's defined benefit pension plan:Defined Benefit ObligationPension Plan Assets$7,515,0007,322,000On January 1, 2023, Cullumber acquired the operations of Blossom Ltd. As one of the conditions of the purchase, Cullumber agreedthat Blossom's employees would be included in Cullumber's defined benefit pension plan and would be granted credit for the pastservice of Blossom's employees. The actuary estimated the value of the prior service amount granted on January 1, 2023 to be$312,500.Cullumber's actuary provided the following information on December 31, 2023:Current year service cost$376,000Employer contributions for the year443,300Benefits paid to retirees183,900Actuarial increase in pension obligations112,900Expected return on assets6%Actual return on assets5%Discount rate6%(a)Prepare a pension worksheet for Cullumber Corporation for the year ending December 31, 2023.

Pension worksheet is a document maintained by the employer to show annual pension expense, pension…

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Business

Accounting

Prepare a pension worksheet for Cullumber Corporation for the year ending December 31, 2023.

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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Question

Cullumber Corporation is a privately-owned company that follows ASPE. On December 31, 2022, Cullumber's financial records
indicated the following information related to the company's defined benefit pension plan:
Defined Benefit Obligation
Pension Plan Assets
$7,515,000
7,322,000
On January 1, 2023, Cullumber acquired the operations of Blossom Ltd. As one of the conditions of the purchase, Cullumber agreed
that Blossom's employees would be included in Cullumber's defined benefit pension plan and would be granted credit for the past
service of Blossom's employees. The actuary estimated the value of the prior service amount granted on January 1, 2023 to be
$312,500.
Cullumber's actuary provided the following information on December 31, 2023:
Current year service cost
$376,000
Employer contributions for the year
443,300
Benefits paid to retirees
183,900
Actuarial increase in pension obligations
112,900
Expected return on assets
6%
Actual return on assets
5%
Discount rate
6%
(a)
Prepare a pension worksheet for Cullumber Corporation for the year ending December 31, 2023.

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