For each of the following scenarios, choose the option from the following list which best describes the treatment of the item on the financial statements of Turkey Inc. for the current year ending December 31, 2020:

a) Change in accounting policy requiring retrospective application

b) Change in estimate

c) Correction of error

d) None of the above

Required

1. In 2020, Turkey introduced a new pension plan for its employees, which included past service costs of $ 50,000. It decided to recognize the $ 50,000 as part of its 2020 pension expense.
2. During 2020, a long-term bond with a carrying value of $3,600,000 was retired at a cost of $4,100,000.
3. After negotiations with Canada Revenue Agency, income taxes owing for 2019 were established at $42,900. They were originally estimated to be $ 28,600.
4. In 2020, the company incurred interest expense of $29,000 on a 20-year bond issue.