Reference no: EM132594297
Question
Culver Corporation is a publicly traded company that follows IFRS.
On December 31, 2019, Culver' financial records indicated the following information related to the company's defined benefit pension plan:
Defined Benefit Obligation $3,716,000
Pension Plan Assets 3,716,000
On July 1, 2020, Culver acquired the operations of Trap Ltd. As one of the conditions of the purchase, Culver agreed that Trap's employees would be included in Culver's defined benefit pension plan, and would be granted credit for the past service of Trap's employees. The actuary estimated the value of the prior service amount granted on July 1, 2020 to be $195,000.
Culver' actuary provided the following information on December 31, 2020:
Current year service cost $891,000
Employer contributions for the year 904,000
Benefits paid to retirees 331,000
Actuarial increase in pension obligations 51,000
Discount rate 6%
Actual return on assets 4%
-Prepare pension worksheet for Culver Corporation for the year ending December 31, 2020.
-Prepare the journal entry to record the pension expense for 2020.
-What is the funded status on December 31, 2020?