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Problem 4 (20%) Madison Square Park has a defined benefit pension plan that covers all...

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Accounting

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Problem 4 (20%) Madison Square Park has a defined benefit pension plan that covers all its full-time employees. The following data are available for the pension plan at the end of 2015: Defined benefit obligation, Dec. 31, 2014 Fair value of plan assets, Dec. 31, 2014 Benefits paid to retirees in 2015 Actual return on plan assets for 2015 Contributions to the pension fund at year-end 2015 Past service cost: from changes made in 2015 to the plan that increased pension benefits for service years prior to 2015. $1,500,000 1,400,000 128,000 10,240 241,000 158,180 339,200 Actuarial revaluation: made at the end of 2015 that increased pension liability because of a revision upward of expected salary growth rate. Long-term interest rate on high-quality, corporate bonds 4% Current service cost for 2014 196,000 1. Prepare all journal entries for Madison Square Park's pension plan for 2015 under IFRS. 2. Calculate the defined benefit obligation and fair value of plan assets at the end of 2015. Defined benefit obligation: Plan assets

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