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Unformatted text preview: ed benefit pension plan: For the Year Ended December 31, 2011 2012 Plan assets (at fair value) $1,200,000 $1,680,000 Accrued benefit obligation 1,260,000 1,800,000 Pension expense 480,000 520,000 Employer’s contribution 530,000 530,000 Unrecognized prior service costs granted Dec 31/11 120,000 110,000 Prior to 2011, the accrued benefit obligation equaled the fair value of the pension plan assets. The corporation uses the deferral and amortization approach. Required:
a. What descriptions and amounts are reported on the income statement and balance sheet related to pensions for calendar 2011? b. What descriptions and amounts are reported on the income statement and balance sheet related to pensions for calendar 2012? TRU Open Learning BBUS 3211 • PRACTICE EXAMINATION 9 of 13 Question 4 (12 marks) In 2012, the first year of its existence, Lilliput Ltd.’s accountant, in preparing both the income statement and the tax return, developed the following list of items creating differences between accounting and taxable i...
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