The following facts apply to the pension plan of Yorke Inc. for the year 2020. Yorke applies ASPE. 

Instructions 

a. Using a work sheet, calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Yorke has chosen the funding measure of its defined benefit obligation as its accounting policy choice. 

b. Discuss what adjustments would need to be made to your calculations and entries in part (a) if Yorke's accounting policy choice was the accounting measure of its defined benefit obligation. 

c. Calculate pension expense if IFRS had been applied to this plan. Comment on any difference between this expense and the pension expense calculated in part (b).

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Plan assets, January 1, 2020 $490,000 Defined benefit obligation, funding basis, January 1, 2020 389,000 Defined benefit obligation, accounting basis, January 1, 2020 490,000 Discount/interest rate 8.5% Annual pension service cost 40,000 Contributions 30,000 Actual return on plan assets 49,700 Benefits paid to retirees 33,400