Sandhill Corporation reports the following January 1, 2023 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows: 2023 2024 2025 Annual service cost $34,800 $43,700 $58,600 Discount rate 10% 10% 10% Actual return on plan assets 37,100 50,040 54,000 Funding of current service cost 34,800 43,700 58,600 Funding of past service cost 74,000 78,500 Benefits paid 31,500 37,490 49,000 Past service cost (plan amended, 1/1/24) 348,000 Change in actuarial assumptions establishes a December 31, 2025 defined benefit obligation of 1,196,000 Determine the pension expense for each of 2023, 2024, and 2025.
Sandhill Corporation reports the following January 1, 2023 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows: 2023 2024 2025 Annual service cost $34,800 $43,700 $58,600 Discount rate 10% 10% 10% Actual return on plan assets 37,100 50,040 54,000 Funding of current service cost 34,800 43,700 58,600 Funding of past service cost 74,000 78,500 Benefits paid 31,500 37,490 49,000 Past service cost (plan amended, 1/1/24) 348,000 Change in actuarial assumptions establishes a December 31, 2025 defined benefit obligation of 1,196,000 Determine the pension expense for each of 2023, 2024, and 2025.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sandhill Corporation reports the following January 1, 2023 balances for its defined benefit pension plan, which it accounts for under
IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as
follows:
2023
2024
2025
Annual service cost
$34,800
$43,700
$58,600
Discount rate
10%
10%
10%
Actual return on plan assets
37,100
50,040
54,000
Funding of current service cost
34,800
43,700
58,600
Funding of past service cost
74,000
78,500
Benefits paid
31,500
37,490
49,000
Past service cost (plan amended, 1/1/24)
348,000
Change in actuarial assumptions establishes a December 31,
2025 defined benefit obligation of
1,196,000
Transcribed Image Text:Determine the pension expense for each of 2023, 2024, and 2025.
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