Answered: What is Havana’s 2021 gain or loss on…

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 Havana Corporation's defined benefit pension plan:

($ in thousands)	2021 Beginning balances		2022 Beginning balances
Projected benefit obligation	$	(6,700	)	$	(7,204	)
Plan assets		6,400			7,036
Prior service cost–AOCI		670			640
Net loss–AOCI	$	790		$	850

At the end of 2021, Havana contributed $730 thousand to the pension fund and benefit payments of $664 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 Havana’s 2021 gain or loss on plan assets?

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