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).
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%
(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) Prepare the
the pension plan in 2020.
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