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