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

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Question

Accounting

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

($ in 000s)

2016

2017

Beginning balances

Beginning balances

Projected benefit obligation

($6,000)

($6,504)

Plan assets

5,760

6,336

Prior service cost-AOCI

600

552

Net loss-AOCI

720

786

At the end of 2016, Havana contributed $696 thousand to the pension fund and benefit payments of $624 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.

Assume the loss on plan assets (or the negative unexpected returns on plan assets) was $72,000 (Note this is a loss). Using information provided for Havana Corporation and the above assumption, calculate the amortization of Net loss-AOCI for the year 2016:

B. $7,200
D. Cannot be determined without information on average remaining service lives of employees
C. $138,000
E. None of the other answer choices are correct
A. $6,000

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