The following information pertains to Havana Corporation's defined benefit penslon plart 2022 Beginning 2021 ($ in thousands) Beginning balances balances Projected benefit obligation Plan asseta Prior service cost-AOCI S(6,900) 6,660 $(7,404) 7,236 690 610 Net loss-AOCI 810 886 At the end of 2021, Havana contributed $680 thousand to the pension fund and benefit payments of $684 thousand were made to retirees. The expechd 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?

The following information pertains to Havana Corporation's defined benefit penslon plart 2022 Beginning 2021 ($ in thousands) Beginning balances balances Projected benefit obligation Plan asseta Prior service cost-AOCI S(6,900) 6,660 $(7,404) 7,236 690 610 Net loss-AOCI 810 886 At the end of 2021, Havana contributed $680 thousand to the pension fund and benefit payments of $684 thousand were made to retirees. The expechd 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?

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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Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

The following information pertains to Havana Corporation's defined benefit pension plart
2021
2022
Beginning
Beginning
balances
(S in thousands)
Projected benefit obligation
Plan asseta
Prior service cost-AOCI
Net loss-AOCI
balances
$(6,900)
6,660
$(7,404)
7,236
690
610
810
886
At the end of 2021, Havana contributed $680 thousand to the pension fund and benefit payments of $684 thousand were made to retirees. The
expeched 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?

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