The following information is available for Huntley Corporation's pension plan for the year 2013:
Expected return on plan assets....................................$ 15,000
Actual return on plan assets..........................................17,000
Benefits paid to retirees...............................................40,000
Contributions (funding) ..............................................95,000
Discount rate and expected rate of return...........................10%
Defined benefit obligation, Jan. 1, 2013........................500,000
Service cost...........................................................65,000
Instructions
(a) Calculate pension expense for the year 2013, and provide the entries to recognize the pension expense and funding for the year, assuming that Huntley follows IFRS and accounts for its pension under the immediate recognition approach. Assume that the DBO provided at January 1, 2013, for accounting and funding purposes is the same.
(b) Calculate pension expense for the year 2013, and provide the entries to recognize the pension expense and funding for the year, assuming that Huntley follows ASPE and accounts for its pension under the deferral and amortization approach.