Hi-Flie-Ing Corporation offers a defined benefit pension plan to all its eligible employees. The company uses the December 31 year end and uses IFRS to prepare its financial statements. It has reported a credit balance of $1,380,000 as at December 31, 2018 for its Net Defined Benefit Liability/Asset Account. The plan is underfunded by 20% of its Defined Benefit Obligation. The company also recorded, during 2019, $200,000 as Past Service Costs which were assumed to have accrued on January 1, 2019. Use this given information plus any additional given information to answer Questions 23-25. Treat each question as being independent of the others unless stated otherwise. You are advised not to use any information given in other questions unless stated otherwise. [23] The company determines its interest expenses and benefits on the balance existing at the beginning of the year. You are told that the company recorded $386,400 as the expected returns on Plan Assets for the year. $546,000 were recorded as current services costs during 2019. What would be the interest expense on the Defined Benefit Obligation for 2019? O a $497,000 Ob $96,000 OC. $483,000 Od $200,000 e Cannot be determined with the given information. [24] Given the actual rate of return on Plan Assets to be 6.25% and the expected returns on Plan Assets amounting to $386,400, what would be the OCl impact from gain or loss on Plan Assets? O a $53,250 CR. Ob $53,250 DR. O c. $41,400 CR. Od $41,400 DR. O e. Cannot be determined with the given information. [25] Each year, the company makes a contribution to the plan at the end of the year. For 2019, this contribution amounted to 30% of the deficit in funding reported at the end of 2018. The entry reflected in the employer's books of accounts should show O a. DEBIT-Accrued Pension Asset/Liability [5414,000]; CREDIT-Cash [5414,000). Ob. DEBIT-Accrued Pension Asset/Liability [5474,000]; CREDIT-Cash [5474,000] OC DEBIT-Pension Expenses [$414,000); CREDIT-Cash [$414,000). O d. DEBIT-Pension Expenses [5474,000); CREDIT-Cash [5474,000). O e. DEBIT-Contribution Surplus [$414,000); CREDIT-Cash ($414,000). Hi-Flie-Ing Corporation offers a defined benefit pension plan to all its eligible employees. The company uses the December 31 year end and uses IFRS to prepare its financial statements. It has reported a credit balance of $1,380,000 as at December 31, 2018 for its Net Defined Benefit Liability/Asset Account. The plan is underfunded by 20% of its Defined Benefit Obligation. The company also recorded, during 2019, $200,000 as Past Service Costs which were assumed to have accrued on January 1, 2019. Use this given information plus any additional given information to answer Questions 23-25. Treat each question as being independent of the others unless stated otherwise. You are advised not to use any information given in other questions unless stated otherwise. [23] The company determines its interest expenses and benefits on the balance existing at the beginning of the year. You are told that the company recorded $386,400 as the expected returns on Plan Assets for the year. $546,000 were recorded as current services costs during 2019. What would be the interest expense on the Defined Benefit Obligation for 2019? O a $497,000 Ob $96,000 OC. $483,000 Od $200,000 e Cannot be determined with the given information. [24] Given the actual rate of return on Plan Assets to be 6.25% and the expected returns on Plan Assets amounting to $386,400, what would be the OCl impact from gain or loss on Plan Assets? O a $53,250 CR. Ob $53,250 DR. O c. $41,400 CR. Od $41,400 DR. O e. Cannot be determined with the given information. [25] Each year, the company makes a contribution to the plan at the end of the year. For 2019, this contribution amounted to 30% of the deficit in funding reported at the end of 2018. The entry reflected in the employer's books of accounts should show O a. DEBIT-Accrued Pension Asset/Liability [5414,000]; CREDIT-Cash [5414,000). Ob. DEBIT-Accrued Pension Asset/Liability [5474,000]; CREDIT-Cash [5474,000] OC DEBIT-Pension Expenses [$414,000); CREDIT-Cash [$414,000). O d. DEBIT-Pension Expenses [5474,000); CREDIT-Cash [5474,000). O e. DEBIT-Contribution Surplus [$414,000); CREDIT-Cash ($414,000)
