Reference no: EM132973166

Scallion Company received the following reports on its defined benefit pension plan for the current calendar year 2019:

DBO                                                PLAN ASSETS

Balance Jan 1 $400,000        Balance Jan 1 $250,000

Service Cost 195,000         Actual return 30,000

Interest cost 40,000           Annual contribution 110,000

Benefits paid (80,000)             Benefits paid (80,000)

Balance Dec 31 $ 555,000           Balance, Dec 31 310,000

The long-term expected rate of return on plan assets is 10%.

Problem 1: 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.

Problem 2: 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.