Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) 2021 Beginning balances 2022 Beginning balances Projected benefit obligation $ (6,400
The following information pertains to Havana Corporation's defined benefit pension plan:
($ in thousands) | 2021 Beginning balances | 2022 Beginning balances | ||||||
Projected benefit obligation | $ | (6,400 | ) | $ | (6,904 | ) | ||
Plan assets | 6,100 | 6,736 | ||||||
Prior service costAOCI | 640 | 580 | ||||||
Net lossAOCI | $ | 760 | $ | 826 | ||||
At the end of 2021, Havana contributed $735 thousand to the pension fund and benefit payments of $634 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 pension expense for Havanas plan?
Multiple Choice
-
None of these are correct.
-
$672 thousand.
-
$631 thousand.
-
$597 thousand.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started