Problem 1 (15 points) The Campolino Company has a defined benefit pension plan for its employees. The following information was available for the current year: Present value of defined benefit obligation, beginning of year $1,000,000 Fair value of plan assets, beginning of year 900,000 Service cost, current year 70,000 Past service cost, current year 150,000 Actuarial gain, current year 10,000 Actual return on plan assets, current year 60,000 6% Effective yield on high-quality corporate bonds, current year Required: 1. Under IFRS, determine the amount of defined benefit cost for the current year to be reported in (a) net income and (b) other comprehensive income. 2. Under US GAAP, determine the amount of past service that would be included in the pension expense for the current year, if the average expected remaining working life of its employees is 5 years. Problem 1 (15 points) The Campolino Company has a defined benefit pension plan for its employees. The following information was available for the current year: Present value of defined benefit obligation, beginning of year $1,000,000 Fair value of plan assets, beginning of year 900,000 Service cost, current year 70,000 Past service cost, current year 150,000 Actuarial gain, current year 10,000 Actual return on plan assets, current year 60,000 6% Effective yield on high-quality corporate bonds, current year Required: 1. Under IFRS, determine the amount of defined benefit cost for the current year to be reported in (a) net income and (b) other comprehensive income. 2. Under US GAAP, determine the amount of past service that would be included in the pension expense for the current year, if the average expected remaining working life of its employees is 5 years