The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) Projected...

90.2K

Verified Solution

Question

Accounting

image
image
The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) Projected benefit obligation Plan assets Prior service cost-AOCI Net loss-AOCI 2021 Beginning balances $(7,900) 7,600 790 $ 910 2022 Beginning balances $(8,484) 8,236 730 $ 980 At the end of 2021. Havana contributed $742 thousand to the pension fund and benefit payments of $784 thousled 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 the 2021 service cost for Havana's plan? Multiple Choice $615 thousand. Cannot be determined from the given information. $428 thousand $735 thousand

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students