Question
The following information pertains to Panama Corporation's defined benefit pension plan: ($ in thousands) 2021 Beginning balances 2022 Beginning balances Projected benefit obligation $ (6200)
The following information pertains to Panama Corporation's defined benefit pension plan:
| ($ in thousands) | 2021 Beginning balances |
| 2022 Beginning balances |
| ||||
| Projected benefit obligation | $ | (6200) |
|
| $ | (6704) |
|
|
| Plan assets |
| 5960 |
|
|
| 6536 |
|
|
| Prior service costAOCI |
| 620 |
|
|
| 560 |
|
|
| Net lossAOCI | $ | 740 |
|
| $ | 806 |
|
|
At the end of 2021, Panama contributed $665 thousand to the pension fund and benefit payments of $614 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO.
What is Panama's 2021 actual return on plan assets?
| $525 thousand. | ||
| $1139 thousand. | ||
| $637 thousand. | ||
| None of these are correct. |
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