What is the 2021 pension expense for Foundry's plan? Multiple Choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information pertains to Foundry Inc.'s defined benefit pension plan:
2021
2022
Beginning
Beginning
($ in thousands)
balances
balances
Projected benefit obligation
$ ( 6,100)
$ (6,604)
Plan assets
5,800
6,436
Prior service cost-AOCI
610
575
Net loss-AOCI
2$
730
2$
816
At the end of 2021, Foundry contributed $715 thousand to the pension fund and benefit
payments of $624 thousand were made to retirees. The expected rate of return on plan
assets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarial
estimates 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.
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