1. Hamei Inc. follows IFRS and offers a defined benefit pension plan to its employees. Hamei made contributions to the plan and payments to the retirees at the end of the year. Other pertinent details for the year ended December 31, 20X5, are as follows: Current service cost $60,000 Past service cost $10,000 Contribution to the plan made by Hamei, December 31, 20X5 $360,000 Benefits paid to retirees, December 31, 20X5 $185,000 Discount rate used by actuary 8% Fair value of plan assets as at January 1, 20X5 $890,000 Fair value of plan assets as at December 31, 20X5 $1,210,000 What are the remeasurement gains or (losses) on plan assets for the 20X5 year?

a) $ 23,800 b) $ 73,800 c) $145,000 d) $154,300

2. Gidget Corp. has a defined benefit pension plan for its employees. It reports its financial results in accordance with IFRS. On January 1, 20X1, the fair value of the plan assets was $3,300,000 and the present value of the defined benefit obligation was $2,800,000. In 20X1, Gidget improved the benefits payable under the pension plan. The plan's actuaries advised that the past service costs arising from this improvement were $450,000 dated back to January 1. Other information follows: Current service cost for 20X1 was $325,000. Gidget sent $350,000 cash to the pension trust on June 30, 20X1. The pension trust paid out $225,000 in pension benefits with the payment made on December 31, 20X1. The plan actuaries determined that the appropriate interest rate for 20X1 was 5%. The actual return on plan asset for 20X1 was $195,000. The actuaries revised the PVDBO as at December 31, 20X1, due to changes in the expected inflation rate. The revised value was $3,490,000. What amount of pension expense is recognized on Gidget's 20X1 income statement?

a) $720,000 b) $742,500 c) $755,000 d) $763,750

3. On January 1, 20X5, Wellington Inc. entered into a six-year lease agreement to lease electronic equipment to Gunvalson Corp. The equipment has an economic life of eight years and costs $380,000. Wellington specifically purchased the equipment for Gunvalson's use. Gunvalson has agreed to make annual payments at the beginning of each year. At the end of the lease, the equipment is expected to have an unguaranteed residual value of $30,000. Wellington expects to collect all payments from Gunvalson, and Wellington's required rate of return is 4%. Assuming that Wellington follows IFRS, what are the lease payments needed to earn Wellington's required rate of return?

a) $65,353 b) $67,967 c) $69,701 d) $72,490

4. On January 1, 20X5, Wellington Inc. entered into a six-year lease agreement to lease electronic equipment to Gunvalson Corp. The equipment has an economic life of eight years and costs $380,000. Wellington specifically purchased the equipment for Gunvalson's use. Gunvalson has agreed to make annual payments at the beginning of each year. At the end of the lease, the equipment is expected to have an unguaranteed residual value of $30,000. Wellington expects to collect all payments from Gunvalson. Wellington's required rate of return is 5% and this rate is known to Gunvalson. Gunvalson follows IFRS. Assuming that the annual lease payment was $66,000 on January 1, 20X5, what amount should Gunvalson record as its lease liability on inception of the lease?

a) $268,996 b) $285,745 c) $308,132 d) $351,745

5. Which of the following statements regarding the lease criteria under ASPE would support classifying a lease as a capital lease?

a) The PVLP of the lease must be more than 75% of the fair value of the leased asset.

b) The term of the lease must be more than 90% of the economic life of the leased asset.

c) The equipment requires significant modification such that only the lessee would be able to use the equipment.

d) The lease has a bargain purchase option.