Calculate the pension expense that will be reported

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Problem - The following information concerns Cullumber Corp.'s defined benefit pension plan.

Defined benefit obligation, 1/1/20 $236,000 (before amendment)

Plan assets, 1/1/20 150,000

Discount rate 10%

Annual pension service cost 11,500

Actual return on plan assets 7,500

On January 1, 2020, the company amended its pension plan, which resulted in a reduction in prior service benefits for current employees. The present value of the reduced benefits is $36,000. Calculate the pension expense that will be reported in net income for 2020 if Cullumber applies IFRS.

Reference no: EM133037462

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