Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands). Defined benefit obligation $340,000 Plan assets (market-related value) $270,000 Pension asset/liability $ 70,000 Cr OCI—Loss $ 39,000 On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000 Service cost $45,000 Benefits paid retirees $41,000 Contributions $65,000 Discount (interest) rate 7% Instructions. (a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Indicate the pension-related amounts that would be reported on the income statement and the statement of financial position for Ridley Corporation for the year 2020.
Ridley Corporation is a manufacturing company in the Caribbean. The company
sponsors a defined benefit pension plan for its employees. The following balances relate
to the plan on January 1, 2020. (amounts in thousands).
Defined benefit obligation $340,000
Plan assets (market-related value) $270,000
Pension asset/liability $ 70,000 Cr
OCI—Loss $ 39,000
On December 31, 2020, the actuary provided the following additional data as a result of
the operation of the plan during the year.
Actual return on plan assets $27,000
Service cost $45,000
Benefits paid retirees $41,000
Contributions $65,000
Discount (interest) rate 7%
Instructions.
(a) Prepare a 2020 pension worksheet with supplementary schedules.
(b) Determine the amounts of the components of pension expense that should be recognized
by the company in 2020.
(c) Indicate the pension-related amounts that would be reported on the income statement and
the
Step by step
Solved in 2 steps
