Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Regulation In Japan Evolution And Development From 2001 To 2015

Authors: Masatsugu Sanada, Yoshihiro Tokuga

1st Edition

0367221071, 9780367221072

More Books

Students also viewed these Accounting questions