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The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) 2021 Beginning balances 2022 Beginning balances Projected benefit obligation $ (6,100
The following information pertains to Havana Corporation's defined benefit pension plan:
($ in thousands) | 2021 Beginning balances | 2022 Beginning balances | ||||||
Projected benefit obligation | $ | (6,100 | ) | $ | (6,604 | ) | ||
Plan assets | 5,800 | 6,436 | ||||||
Prior service costAOCI | 610 | 575 | ||||||
Net lossAOCI | $ | 730 | $ | 816 | ||||
At the end of 2021, Havana contributed $715 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 service cost for Havana's plan?
Multiple Choice
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$640 thousand.
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$246 thousand.
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Cannot be determined from the given information.
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$520 thousand.
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