Question
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
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$510 thousand.
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$630 thousand.
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$367 thousand.
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Cannot be determined from the given information.
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