61 the net defined benefit liability asset that should be reported at december 31 20 4314548

61.              The net defined benefit liability/asset that should be reported at December 31, 2017 is

a) $120,000 asset.

b) $120,000 liability.

c) $204,000 asset.

d) $360,000 liability.

62.              Presented below is pension information related to Mango Ltd. at December 31, 2017.The corporation uses IFRS.

Defined benefit obligation………………….$3,500,000Cr

Plan assets (at fair value)………………….2,500,000Dr

Past service costs……………………….100,000

Contributions to plan……………………..200,000

              The amount to be reported as the net defined benefit liability at December 31, 2017 is

a) $1,100,000.

b) $1,000,000.

c) $900,000.

d) $700,000.

63.              Presented below is pension information related to Squash Corp. for the calendar year 2017.The corporation uses IFRS.

Current service cost………………………$204,000

Discount (interest) rate…………………….9%

Defined benefit obligation, Jan 1……………..$1,800,000

Benefits paid to retirees……………………100,000

Past service cost (effective Jan 1)…………….50,000

              The pension expense to be reported for 2017 is

a) $266,000.

b) $366,000.

c) $416,000.

d) $420,500.

64.              Presented below is pension information related to Watermelon Corp. for the calendar year 2017.The corporation uses IFRS.

Current service cost………………………$126,000

Discount (interest) rate…………………….10%

Defined benefit obligation, Jan 1……………..$900,000

Actual & expected return on plan assets………..24,000

Actuarial loss…………………………..28,000

              The pension expense to be reported for 2017 is

a) $220,000.

b) $192,000.

c) $164,000.

d) $130,000.

65.              Daikon Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for calendar 2017.The corporation uses ASPE.

Jan 1, 2014Dec 31, 2014

Fair value of plan assets$2,100,000 $2,250,000

Accrued benefit obligation2,400,0002,580,000

              For 2017, the current service cost is $180,000. The interest rate on the liability is 10% and the actual rate of return on plan assets is 9%. The pension expense to be reported for 2017 is

a) $265,500.

b) $231,000.

c) $216,000.

d) $180,000.

66.              Presented below is information related to Peach Corporation’s defined benefit pension plan for calendar 2017. The corporation uses IFRS.

Defined benefit obligation, Jan 1……………..$200,000

Fair value of plan assets, Jan 1………………180,000

Current service cost………………………27,000

Contributions to plan……………………..25,000

Actual and expected return on plan assets………9,000

Benefits paid to retirees……………………40,000

Interest (discount) rate…………………….10%

The balance of the defined benefit obligation at December 31, 2017 is

a) $185,000.

b) $187,000.

c) $207,000.

d) $245,000.

Use the following information for questions 67–68.

              Presented below is information related to Kiwi Ltd. for calendar 2017.The corporation uses IFRS.

Defined benefit obligation, Jan 1……………..$720,000

Fair value of plan assets, Jan 1………………700,000

Current service cost………………………90,000

Contributions to plan……………………..125,000

Actual and expected return on plan assets………56,000

Past service costs (effective Jan 1)……………10,000

Benefits paid to retirees……………………96,000

Interest (discount) rate…………………….9%

67.              The pension expense to be reported for 2017 is

a) $140,000.

b) $109,700.

c) $108,800.

d) $ 60,000.

68.              The balance of the defined benefit obligation at December 31, 2017 is

a) $724,000.

b) $779,700.

c) $778,800.

d) $789,700.

69. At December 31, 2017, the following information was provided by the defined benefit pension plan administrator for Leonardo Corp.:

Fair value of plan assets…………………..$5,000,000

Defined benefit obligation………………….6,200,000

The corporation uses IFRS. What is the net defined benefit liability/asset account that should be shown on Leonardo’s December 31, 2017 statement of financial position?

a) $1,200,000 liability

b) $1,200,000 asset

c) $6,200,000 liability

d) $5,000,000 asset

70. Thomson Corp. provides a defined benefit pension plan for its employees, and uses IFRS to account for it. The corporation's actuary has provided the following information for the year ended December 31, 2017:

Defined benefit obligation, Dec 31…………….525,000

Fair value of plan assets, Dec 31…………….625,000

Current service cost………………………240,000

Interest on defined benefit obligation…………..24,000

Past service costs……………………….60,000

Expected and actual return on plan assets………82,500

Contributions to plan……………………..200,000

The pension expense to be reported for 2017 is

a) $241,500.

b) $324,000.

c) $406,500.

d) $524,000.

71. Bateman Corp. provides a defined benefit pension plan for its employees, and IFRS to account for it. The trustee administering the plan provided the following information for the year ended December 31, 2017:

Fair value of plan assets, Jan 1………………$1,200,000

Defined benefit obligation, Jan 1……………..1,270,000

Current service cost………………………300,000

Employer's contributions …………………..360,000

Past service cost (at Jan 1)…………………30,000

Benefits paid retirees……………………..325,000

Actual and expected return …………………60,000

Interest (discount) rate…………………….8%

The pension expense to be reported for 2017 is

a) $270,000.

b) $366,000.

c) $374,000.

d) $434,000.

Use the following information for questions *72–*73.

Maggie Moo, age 40, begins employment with Farm Corporation on January 1, 2017 at a starting salary of $40,000. It is expected that Maggie will work for the company for 25 years, retiring on December 31, 2041, when Maggie is 65 years old.It is expected that her salary at retirement will be $140,000.Further assume that mortality tables indicate the life expectancy of someone age 65 in 2041 is 12 years.

Farm Corporation sponsors a defined benefit pension plan with the following formula

Annual pension benefit on retirement = 3% of salary for each year of service, or3% final salary x years of service.

Assume a discount rate of 6%

72.Determine the current service cost for Maggie Moo at December 31, 2017.

a) $4,200

b) $8,212.66

c) $8,696.69

d. $35,212.12

73. Determine the Defined Benefit Obligation for Maggie Moo at December 31, 2018.

a) $8,400

b) $17,416.01

c) $18,434.87

d) $70,415.86