Question
Rocko's Corp. has a defined benefit pension plan for its employees. It reports its financial results in accordance with IFRS. On January 1, 2019, the
Rocko's Corp. has a defined benefit pension plan for its employees. It reports its financial results in accordance with IFRS. On January 1, 2019, the fair value of the plan assets was $3,300,000 and the pension obligation was $2,800,000. In 2019, Rocko's Corp. improved the benefits payable under the pension plan. The plans actuaries advised that the past service costs arising from this improvement were $450,000. Other information follows: The current service cost for 2019 was $325,000. Rocko sent $350,000 cash to the pension trust on June 30, 2019. The pension trust paid out $225,000 in pension benefits with the payment made on December 31, 2019. The plan actuaries determined that the appropriate interest rate for 2019 was 5%. The actual return on plan assets for 2019 was $195,000. The actuaries revised its estimate of the pension obligation as at December 31, 2019, due to changes in the expected inflation rate. The revised value was $3,490,000. What amount of pension expense is recognized on Rockos 2019 income statement?
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