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The following information pertains to Havana Corporation's defined benefit pension plan: ($ in 000s) 2016 2017 Beginning balances Beginning balances Projected benefit obligation ($6,000) ($6,504)

The following information pertains to Havana Corporation's defined benefit pension plan:

($ in 000s)

2016

2017

Beginning balances

Beginning balances

Projected benefit obligation

($6,000)

($6,504)

Plan assets

5,760

6,336

Prior service cost-AOCI

600

552

Net loss-AOCI

720

786

At the end of 2016, 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%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2016 pension expense for Havana's plan?

$594 thousand.

$606 thousand.

$678 thousand.

None of these answer choices is correct.

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