Calculate cullumber pension expense

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Cullumber Corp. provides a defined contribution pension plan for its employees. The plan requires Cullumber to contribute 5% of employees' gross pay to a fund trustee each year. Cullumber's total payroll for 2020 was $2,851,200. At the start of 2020, Cullumber revised the terms of the plan, which resulted in past service costs of $867,900. Cullumber expects to realize the economic benefits from the plan change for at least five years, beginning in 2020.

Problem a) Calculate Cullumber's pension expense for 2020 assuming that the company follows IFRS.

Problem b) Calculate Cullumber's pension expense for 2020 assuming that the company follows ASPE.

Reference no: EM132952522

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