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The following information comes from the defined benefit pension plan of TBTF Corporation for the year ended December 31, 2021:
Contributions to plan $75,825
Benefits paid to retirees $111,651
Current service cost $83,408
Defined benefit obligation, January 1, 2021 $650,362
Defined benefit obligation, December 31, 2021 $815,660
Plan assets, January 1, 2021 $591,238
Past service cost arising on January 1, 2021 $92,578
| Expected rate of return on plan assets/discount rate | | 6% |
| Actual rate of return on plan assets | | | | 4% |
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| TBTF Corporation complies with IFRS and has a year end of December 31. |
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| Required: | | | | | | |
| 1. | Prepare a pension worksheet for TBTF Corporation for the year ended December 31, 2021. (9 marks) |
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| 2. | Prepare the journal entries required by TBTF to account for the pension plan in 2021. (2.5 marks) |
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| 3. | Determine the funded status of the plan at December 31, 2021. (1 mark) |
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| 4. | Calculate the defined benefit expense assuming that TBTF follows ASPE instead of IFRS. (1.5 marks) |
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