Question
E19-10 (Pension Expense, Journal Entries) The following information is available for Huntley Corporations pension plan for the year 2017: Plan assets, January 1, 2017 $400,000
E19-10 (Pension Expense, Journal Entries) The following information is available for Huntley Corporations pension plan for the year 2017: Plan assets, January 1, 2017 $400,000 Actual return on plan assets 17,000 Benefi ts paid to retirees 40,000 Contributions (funding) 95,000 Discount rate 8% Defi ned benefi t obligation, January 1, 2017, accounting basis valuation 500,000 Service cost 65,000 Instructions (a) Calculate pension expense for the year 2017, and provide the entries to recognize the pension expense and funding for the year, assuming that Huntley follows IFRS. (b) Calculate pension expense for the year 2017, and provide the entries to recognize the pension expense and funding for the year, assuming that Huntley follows ASPE, and its accounting policy is to use an accounting basis valuation for its defi ned benefi t obligation.
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