Goodday Ltd. has a defined benefit pension plan and a December 31 year-end. The following information relates to the plan:

Balances:
Defined benefit obligation, end of 20X7	$	5,270,000
Pension plan assets, fair value, end of 20X7		4,700,000
SFP net defined benefit liability, end of 20X7		570,000		cr.
SFP accumulated OCI, pension, end of 20X7		71,400		dr.
Retained earnings, end of 20X7		8,634,400		cr.
20X8 earnings, prior to any pension expense		4,222,000		cr.
Current service cost for 20X8, measured using the projected unit credit method		645,300
New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined		((290,000	)
Contributions made to the pension plan assets paid at end of 20X8		430,000
Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined		(104,000	)
Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value		150,300
Benefits paid to pensioners from Pension fund assets paid at end of 20X8		84,000
Interest rate on long-term corporate bonds, end of 20X8		5	%

Required:
1). Calculate and record the second element of pension accounting for the defined benefit plan. That is, calculate net interest cost

2). Prepare the entry to record net interest cost. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the interest expense for net defined benefit pension liability

3). Calculate the two components of net interest: interest on the defined benefit obligation and expected earnings on fund assets.

Answer rating: 100% (QA)

IFRS Year 2020 1 Pension Expense 322060 2 Journal entry Account title Explaination 2020 Debit Credit ... View the full answer