Question 1 (Components of Defined Benefit Obligation and Plan Assets)

The following data relate to Omega Company's pension plan for the year 2017:

Actual return on plan assets	$70,000
Benefits paid	45,000
Contributions to plan	87,000
Fair value of plan assets at January 1, 2017	600,000
Cost of past service benefits granted effective December 31, 2017	34,000
Defined benefit obligation at January 1, 2017	627,000
Current service cost	82,000
Actuarial loss	39,000
Interest (discount) rate	8%

Side Note:

To avoid any confusion

Part A

Prepare a pension worksheet for 2017 based on the IFRS approach. Show the journal entries for pension expense and contribution for 2017.

Part B

Prepare a pension worksheet for 2017 based on the ASPE approach. Show the journal entries for pension expense and contribution for 2017.

In the pension work sheet, the balance of net defined benefit liability/asset equals the net of the balances in the (off-balance sheet) memo accounts. If the memo accounts net to a credit balance, a net defined benefit liability is reported on the statement of financial position. If the memo accounts net to a debit balance, a net defined benefit asset is reported on the statement of financial position