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. $678 thousand. D. None of these are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
. The following information pertains to Sowell Corporation's defined benefit pension plan:
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2022
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2023
|
||||
|
Beginning
|
Beginning
|
||||
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($ in thousands)
|
balances
|
balances
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|||
|
Projected benefit obligation
|
$
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(6,000)
|
$
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(6,504)
|
|
|
Plan assets
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5,760
|
6,336
|
|||
|
Prior service cost–AOCI
|
600
|
552
|
|||
|
Net loss–AOCI
|
$
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720
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$
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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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