KL mestion 170 marks) On December 31, 2019, ACR Limited's financial records indicated the following...
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KL mestion 170 marks) On December 31, 2019, ACR Limited's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation $2,800,000 Pension Plan Assets (Fair Value) 2,750,000 Net Defined Benefit Liability On January 1, 2020, ACR Limited purchased the operations of MMT Company. Included in the conditions of the acquisition was that the employees of MMT be included in ACR 's defined benefit pension plan and be granted credit for the past service of the MMT employees. The actuar estimated the value of the past service amount at $145.000 on January 1, 2020, The company's actuary provided the following information on December 31, 2020: Current year service cost $ 68,000 Employer contributions for the year 87,000 Benefits paid to retirees 95.000 Actual return on assets 6% Discount rate 796 Defined Benefit Obligation $3,135.000 REQUIRED: a) Prepare a pension worksheet for ACR Limited who follows IFRS for the year ending December 31, 2020. 18 marks) b) Prepare the journal entries to record the post retirement (pension) expense and the employer's contribution for 2020. marks) Question 1 Summary Info Question 2 Question 3 Questions Question 4 Type here to search ORL
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