The following facts apply to the pension plan of Yorke Inc. for the year 2017. Yorke applies ASPE.                                                                                              

Plan assets, January 1, 2017                                                         $490,000                              

Defined benefit obligation, funding basis, January 1, 2017                                                             389,000                 

defined benefit obligation, accounting basis, January 1, 2017                                                       490,000                 

Discount/interest rate                                                   8.50%                    

Annual pension service cost                                                        40,000                   

Contributions (funding)                                                                30,000                   

Actual return on plan assets                                                        49,700                   

benefits paid to retirees                                                               33,400                   

                                                                                                

"Instructions:

a) Using a work sheet, calculate pension expense for the year 2017, 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."                                                                                          

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).