Refer to the data in TR19-2.

Data From TR19-2

The following data are to be used for TR19-2 to TR19-6. Good day Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to the plan:

Required:
Calculate and record the second element of pension accounting for the defined benefit plan, net interest cost (show the two components of net interest: interest on the defined benefit obligation and expected earnings on fund assets). Prepare the entry(ies) to record the net interest.

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Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20X7 SFP net defined benefit liability, end of 20X7 $5,215,000 4,810,000 405,000 cr.