51 presented below is information related to peach corporation s defined benefit pen 4314560

51 presented below is information related to peach corporation s defined benefit pen 4314560

51.              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 fair value of the plan assets at December 31, 2017 is

a) $187,000.

b) $174,000.

c) $165,000.

d) $149,000.

52.              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%

The fair value of the plan assets at December 31, 2017 is

a) $785,000.

b) $805,000.

c) $819,000.

d) $875,000.

53. Raphael Inc. provides a defined benefit plan for its employees, and reports using ASPE.The pension plan administrator for Raphael Inc. provided the following information for the year ended December 31, 2017

Fair value of plan assets, January 1…………..760,000

Defined benefit obligation, January 1…………. 820,000

Current service cost………………………60,000

Employer contributions……………………85,000

Benefits paid to retirees……………………50,000

Actual and expected return…………………12,000

Interest (discount) rate…………………….6%

The fair value of the plan assets at December 31, 2017 would be

a) $807,000.

b) $867,000.

c) $907,000.

d) $967,000.

54. At January 1, 2017, Van Gogh Corp.’s defined benefit pension plan, under IFRS, had a defined benefit obligation of $100,000, while the fair value of the plan assets was $120,000. During 2017, the plan's current service cost was $150,000; past service costs were $80,000; Van Gogh contributed $110,000 to the plan; the actual and expected return on the plan assets was $9,000; and benefits paid to retirees were $95,000. What is the fair value of the plan assets at December 31, 2017?

a) $239,000

b) $205,000

c) $144,000

d) $135,000

55. Bateman Corp. provides a defined benefit pension plan for its employees, and uses the IFRS. 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 fair value of the plan assets at December 31, 2017 would be

a) $1,235,000.

b) $1,295,000.

c) $1,335,000.

d) $1,535,000.

56.              Presented below is pension information related to Apple Inc. for the calendar year 2017.The corporation uses the immediate recognition approach.

Current service costs……………………..$288,000

Interest on accrued benefit obligation………….216,000

Expected and actual return on plan assets………72,000

Past service costs……………………….48,000

              The pension expense to be reported for 2017 is

a) $432,000.

b) $480,000.

c) $576,000.

d) $648,000.

57.              Presented below is pension information related to Banana Inc. for the calendar year 2017.The corporation uses ASPE.

Current service costs……………………..$50,000

Contributions to the plan…………………..55,000

Actual return on plan assets………………..45,000

Accrued benefit obligation (beginning of year)…… 600,000

Fair value of plan assets (beginning of year)…….400,000

Interest cost on the obligation……………….10%

              The pension expense to be reported for 2017 is

a) $110,000.

b) $70,000.

c) $65,000.

d) $50,000.

58.              Presented below is pension information related to Cantaloupe Ltd. for the calendar year 2017.The corporation uses ASPE.

Current service costs……………………..$450,000

Actual return on plan assets………………..105,000

Interest on accrued benefit obligation………….195,000

Actuarial experience loss…………………..45,000

Past service costs……………………….82,500

The pension expense to be reported for 2017 is

a) $757,500.

b) $697,500.

c) $667,500.

d) $577,500.

59.              At the end of 2017, Lime Inc. has determined the following adjusted information related to its defined benefit pension plan

Defined benefit obligation………………….$1,320,000

Fair value of pension plan assets…………….1,220,000

              The corporation uses IFRS. Assume the net defined benefit liability/asset account at January 1, 2017 was nil.If the contribution to plan assets in 2017 is $410,000, the pension expense for 2017 is

a) $100,000.

b) $310,000.

c) $410,000.

d) $510,000.

Use the following information for questions 60–61.

              The following information is available for Figgy Enterprises Ltd. for calendar 2017.The corporation uses IFRS.

Plan assets (at fair value), end of year…………              $1,800,000Dr

Defined benefit obligation, end of year…………1,920,000Cr

Pension expense……………………….. 360,000

Contributions for year……………………..324,000

60.              The pension expense to be reported for 2017 is

a) $360,000.

b) $346,000.

c) $324,000.

d) $120,000.

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