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The following data pertains to a defined benefit (DB) pension plan: defined benefit obligation, December 31, 2015 30,000 long-term interest rate on corporate bonds 8%

The following data pertains to a defined benefit (DB) pension plan:

defined benefit obligation, December 31, 2015 30,000

long-term interest rate on corporate bonds 8%

past service cost, December 31, 2016, benefits and

liability reduced (1,300)

actuarial revaluation, December 31, 2016, change in

mortality assumptions, increased liability 600

actual return on plan assets - 2016 2,100

fair value of plan assets, December 31, 2015 20,000

funding payment at December 31, 2016 4,000

benefits paid to retirees - 2016 2,000

current service cost - 2016 1,900

Required:

  1. Calculate the three pension accounting elements and journal entries for service cost, net interest and revaluations for 2016. (5 marks)

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