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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7RE

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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 $7,612,000 Pension Plan Assets 7,266,000 On January 1, 2023, Cullumber acquired the operations of Ivanhoe Ltd. As one of the conditions of the purchase, Cullumber agreed that Ivanhoe's employees would be ingluded in Cullumber's defined benefit pension plan and would be granted credit for the past service of Ivanhoe's employees. The actuary estimated the value of the prior service amount granted on January 1, 2023 to be $332,000. Cullumber's actuary provided the following information on December 31, 2023: Current year service cost Employer contributions for the year Benefits paid to retirees Actuarial increase in pension obligations Expected return on assets Actual return on assets Discount rate O L $379,500 441.200 181.200 119,600 6% 5% 6% prepare a…
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