Tyre Distributors Inc., [TDI], reporting under IFRS, offers a defined benefits pension plan for all of its employees. For 2019, the plan carried beginning balances for the Pension Benefit Obligation and the Plan Assets of $9,000,000 CR and $8,650,000 DR. Current service costs for the year amounted to $350,000 and past service costs were $79,000. The employer uses a rate of 5% to determine its interest costs as well as estimated returns on its investments which are calculated on balances at the beginning of the year. The actual returns turned out to be 20% less than the expected returns. The plan paid out benefits amounting to $210,000 during the year. TDI contributed $85,000 into the plan during the current year. Assume all transactions accrue on the last day of the year except for the past service costs which were incurred on January 1 of the current year. The journal entry to record the pension costs for 2019 would be:

Select one:

a.

DR Pension Expense 450,450 DR OCI 86,500 CR Cash 85,000 CR Net Pension Obligation/Asset 451,950

b.

DR Pension Expense 533,000 CR Net Pension Obligation/Asset 533,000

c.

DR Pension Expense 450,450 DR OCI 86,500 CR Net Pension Obligation/Asset 536,950

d.

DR Pension Expense 432,500 DR OCI 86,500 CR Net Pension Obligation/Asset 519,000

e.

None of the above entries.