Presented below is information related to Peach Corporation's defined benefit pension plan for calendar 2020. The corporation uses IFRS. $\begin{array}{lrrr}
\text{ Defined benefit obligation, Jan 1 ........................................... } & \$ 200,000 \
\text{ Fair value of plan assets, Jan 1 }........................................& 180,000 \
\text{ Current service cost }............................................................& 27,000 \
\text{ Contributions to plan } ............................................................ & 25,000 \
\text{ Actual and expected return on plan assets }.............................. & 9,000 \
\text{ Benefits paid to retirees} ............................................................& 40,000 \
\text{ Interest (discount) rate } ............................................................& 10\% \

\end{array}$ The balance of the defined benefit obligation at December 31, 2020 is

Question

Presented below is information related to Peach Corporation's defined benefit pension plan for calendar 2020. The corporation uses IFRS. $\begin{array}{lrrr} 
\text{  Defined benefit obligation, Jan 1 ...........................................   } & \$ 200,000 \
\text{   Fair value of plan assets, Jan 1  }........................................& 180,000 \
\text{   Current service cost  }............................................................& 27,000 \
\text{  Contributions to plan } ............................................................ & 25,000 \
\text{  Actual and expected return on plan assets  }.............................. & 9,000 \
\text{   Benefits paid to retirees}  ............................................................& 40,000 \
\text{  Interest (discount) rate }  ............................................................& 10\% \
 
\end{array}$ The balance of the defined benefit obligation at December 31, 2020 is

Quizplus · Accepted Answer

The balance of the defined benefit obligation at December 31, 2020 can be calculated as follows: 
Defined benefit obligation at January 1, 2020 = $200,000 
Service costs = $20,000 
Interest costs = $12,000 
Actuarial losses = $10,000 
Benefits paid = $15,000 
Therefore, the defined benefit obligation at December 31, 2020 = $200,000 + $20,000 + $12,000 + $10,000 - $15,000 = $207,000. Thus, the correct option is C.

Presented Below Is Information Related to Peach Corporation's Defined Benefit