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The following information pertains to Houston Corporation's defined benefit pension plan: ($ in thousands) 2021 Beginning balances 2022 Beginning balances Projected benefit obligation $ (6,600

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

($ in thousands) 2021 Beginning balances 2022 Beginning balances
Projected benefit obligation $ (6,600 ) $ (7,104 )
Plan assets 6,360 6,936
Prior service costAOCI 660 600
Net lossAOCI $ 780 $ 846

At the end of 2021, Houtston contributed $665 thousand to the pension fund and benefit payments of $654 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 service cost for Houston's plan?

Multiple Choice

  • $510 thousand.

  • $630 thousand.

  • $367 thousand.

  • Cannot be determined from the given information.

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