Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information pertains to Havana Corporation's defined benefit pension plan: ($ in 000s) 2018 2019 Beginning balances Beginning balances Projected benefit obligation $ (5,900)

image text in transcribed

The following information pertains to Havana Corporation's defined benefit pension plan: ($ in 000s) 2018 2019 Beginning balances Beginning balances Projected benefit obligation $ (5,900) $ (6,504) Plan assets 5,760 6,336 Prior service cost-AOCI 600 552 Net loss-AOCI 720 786 At the end of 2018, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. During the year, there were no changes in actuarial estimates and assumptions regarding the PBO and no amendments of the pension plan. What is the 2018 pension expense for Havana's plan? $616 thousand. $606 thousand. O $706 thousand. $678 thousand

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Philosophy And Technique

Authors: John William Cook

1st Edition

039520660X, 978-0395206607

More Books

Students also viewed these Accounting questions

Question

=+What immediate action if any would you advise?

Answered: 1 week ago