FMC Inc. provides its employees with a defined benefit pension plan. Details are as follows:

Present value defined benefit obligation (DBO) December 31, 2020	$7,000,000
Plan assets December 31, 2020	$5,900,000
Plans actuary confirmed that 4% is the appropriate interest rate to use.
Current service costs (CSC) for the year	$590,000
Past service costs (PSC) (improvement in benefits) January 1, 2020	$60,000
Expected ending DBO December 31, 2020	$7,200,000
Expected ending plan assets December 31, 2020	$6,500,000
Remitted to pension trustee evenly throughout year	$670,000
Payments to retirees evenly throughout year	$640,000

What journal entry should FMC prepare to record the remeasurement gains/losses and actuarial gains/losses for the year? Assume FMC reports under IFRS.

Question 18 options:

a)

DR OCI actuarial losses	200,000
DR OCI losses on remeasurement of plan assets	600,000
CR Net defined benefit liability		800,000

b)

DR OCI actuarial losses	200,000
DR Net defined benefit liability	400,000
CR OCI gains on remeasurement of plan assets		600,000

c)

DR Net defined benefit liability	800,000
CR OCI actuarial gains		200,000
CR OCI gains on remeasurement of plan assets		600,000

d)

DR OCI losses on remeasurement of plan assets	600,000
CR OCI actuarial gains		200,000
CR Net defined benefit liability		400,000