Question
USE THE INFORMATION GIVEN BELOW TO ANSWER QUESTIONS 30-31. Scallion Company received the following reports on its defined benefit pension plan for the current calendar
USE THE INFORMATION GIVEN BELOW TO ANSWER QUESTIONS 30-31.
Scallion Company received the following reports on its defined benefit pension plan for the current calendar year 2019:
DBOPLAN ASSETS
Balance Jan 1 $400,000Balance Jan 1 $250,000
Service Cost195,000Actual return30,000
Interest cost40,000Annual contribution110,000
Benefits paid(80,000) Benefits paid(80,0
The long-term expected rate of return on plan assets is 10%.
Assuming no other data are relevant, what is the pension expense per IFRS for the year?
a.
$197,000.
b.
$227,000
c.
$172,000.
d.
$210,000.
e.
$217,000.
Determine the balance reported by Scallion on its balance sheet as at December 31, 2019 for the Net Benefits Asset/Liability account.
a.
$150,000.
b.
$242,000
c.
$157,000.
d.
$232,000.
e.
$245,000.
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