The following information pertains to Sowell Corporation's defined benefit pension plan: 2022 2023 Beginning Beginning ($ in thousands) balances 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 2022, Sowell 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. What is the 2022 pension expense for Sowell's plan? A. $594 thousand. B. $606 thousand. C. $678 thousand. D. None of these are correct.
The following information pertains to Sowell Corporation's defined benefit pension plan: 2022 2023 Beginning Beginning ($ in thousands) balances 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 2022, Sowell 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. What is the 2022 pension expense for Sowell's plan? A. $594 thousand. B. $606 thousand. C. $678 thousand. D. None of these are correct.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
Related questions
Question
. The following information pertains to Sowell Corporation's defined benefit pension plan:
2022
|
2023
|
||||
Beginning
|
Beginning
|
||||
($ in thousands)
|
balances
|
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 2022, Sowell 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.
What is the 2022 pension expense for Sowell's plan?
A. $594 thousand.
B. $606 thousand.
C. $678 thousand.
D. None of these are correct.
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