QUESTION 5

1. Ishan Ltd. has the following information relates to the defined benefit pension plan for 2019. The corporation uses ASPE.

   Current service cost......................................................... $ 260,000

   Contributions................................................................. 250,000

   Interest rate for obligation.............................................. 10%

   Expected & actual return on plan assets........................... 9%

   Defined benefit obligation, Jan 1..................................... 240,000

   Fair value of plan assets, Jan 1......................................... 180,000

   Instructions

   a) Calculate the pension expense to be reported for 2019.

   b) Prepare the journal entries to record pension expense and the employer's contributions for 2019.