The following information pertains to Foundry Inc.'s defined benefit pension plan:20212022BeginningBeginning($ in thousands)balancesbalancesProjected benefit obligation$ ( 6,100)$ (6,604)Plan assets5,8006,436Prior service cost-AOCI610575Net loss-AOCI2$7302$816At the end of 2021, Foundry contributed $715 thousand to the pension fund and benefitpayments of $624 thousand were made to retirees. The expected rate of return on planassets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarialestimates and assumptions regarding the PBO.What is the 2021 pension expense for Foundry's plan?Multiple Choice$625 thousand.None of these are correct.$532 thousand.$603 thousand.

First, calculate service cost: Service cost=Ending PBO+Retirement benefits-Interest cost-Beginning…

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Business

Accounting

What is the 2021 pension expense for Foundry's plan? Multiple Choice

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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