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Thorp Inc. maintains a defined benefit pension plan for its employees. Pension plan balances as at...

Thorp Inc. maintains a defined benefit pension plan for its employees. Pension plan balances as at January 1, 2020 include: Projected Benefit Obligation (PBO), January 1, 2020 $ 600,000 Plan assets at market-related value, January 1, 2020 $ 550,000 Prior service cost (PSC- OCI)1 $ 150,000 Average remaining service period 15 years Service cost $ 90,000 Expected returns on plan assets 8% Actual returns earned on plan assets $40,000 Actuarial interest rate 4% Contributions paid $ 150,000 Benefits to retirees in 2020 $ 100,000 Loss from change in actuarial assumption, December 31, 2020 $ 46,000 1 These prior service costs are from 2019 and already included in PBO on January 1,2020. Required: a. Determine the pension expenses recognized in 2020. b. Prepare the journal entries to reflect the accounting for the pension plan for 2020. c. Prepare the ending balances (31 December 2020) for plan assets, PBO, and calculate net pension liability. d. What will be the expected impact of the current pandemic (Covid-19) on PBO?

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ekkarill92 answered 1 year ago
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