Answered: hat is the 2021 pension expense for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information pertains to Foundry Inc.'s defined benefit pension plan:

($ in thousands)	2021 Beginning balances		2022 Beginning balances
Projected benefit obligation	$	(6,800	)	$	(7,304	)
Plan assets		6,500			7,136
Prior service cost–AOCI		680			660
Net loss–AOCI	$	800		$	880

At the end of 2021, Foundry contributed $690 thousand to the pension fund and benefit payments of $674 thousand were made to retirees. The expected rate of return on plan assets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO.

What is the 2021 pension expense for Foundry’s plan?

Multiple Choice

$498 thousand.
None of these are correct.
$593 thousand.
$665 thousand.

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