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Question - Blossom Corporation sponsors a defined benefit pension plan and reports under IFRS. On January 1, 2020, the company reported plan assets of $1,100 and a defined benefit obligation of $1,200 (all amounts in thousands of dollars). During 2020, the current service cost was determined to be $99, the discount rate on the DBO and plan assets was 6%, while the actual return on the plan assets for the year was $61. Blossom made contributions of $101 into the plan at the end of the year and the benefits paid amounted to $70. The plan was amended effective December 31, 2020, with the cost of the past service benefits granted being $44. Determine the deficit of the pension plan at January 1, 2020, and calculate its December 31, 2020 deficit balance directly, by identifying which 2020 pension events increased the deficit, which decreased it, and which had no effect.
What role does a trade-in allowance on old equipment play in a decision to retain or replace
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