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Selected Information about the pension plan of Binus Co.

is as follows:
12/31/18 12/31/19
Defined benefit obligation €4,800,000 €5,020,000
Past service costs (Plan amendment January 1, 2019) 500,000
Fair value of plan assets 4,650,000 4,800,000
Pension expense 1,000,000 1,420,000
Contribution 985,000 1,350,000
Discount rate (for year) 9% 8%

Instructions
(a) Calculate the pension asset / liability at December 31, 2019.
(b) Prepare the entry for 2019 to record the pension expense and contribution.

On January 1, 2019, Binus Co. had the following balances:


Defined benefit obligation €3,600,000
Fair value of plan assets 3,600,000

Other data related to the pension plan for 2019:


Service cost 157,500
Contributions to the plan 229,500
Benefits paid 225,000
Actual return on plan assets 216,000
Discount rate 6%

Instructions
(a) Determine the defined benefit obligation at December 31, 2019. There are no net gains
or losses.
(b) Determine the fair value of plan assets at December 31, 2019.
(c) Calculate pension expense for 2019.
(d) Prepare the journal entry to record pension expense and the contributions for 2019.
Binus Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2019,
the following balances related to this plan.

Plan assets (fair value) £ 900,000


Defined benefit obligation 1,200,000
Pension asset/liability 300,000 Cr.
As a result of the operation of the plan during 2019, the actuary provided the following
additional data at December 31, 2019.

Service cost for 2019 £ 150,000


Actual return on plan assets in 2019 90,000
Past service cost, effective Jan. 1 240,000
Contributions in 2019 230,000
Benefits paid retirees in 2019 140,000
Discount rate 8%
Average remaining service life of active employees 10 years

Instructions

(a) Compute pension expense for Binus Corp. for the year 2019 by preparing a pension
worksheet.
(b) Prepare the journal entry for pension expense.