hat is the 2021 pension expense for Foundry’s plan?

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 5P
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The following information pertains to Foundry Inc.'s defined benefit pension plan:

 
($ in thousands) 2021
Beginning balances
  2022
Beginning balances
 
Projected benefit obligation $ (6,800 )   $ (7,304 )  
Plan assets   6,500       7,136    
Prior service cost–AOCI   680       660    
Net loss–AOCI $ 800     $ 880    
 


At the end of 2021, Foundry contributed $690 thousand to the pension fund and benefit payments of $674 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
  •  

    $498 thousand.

  •  

    None of these are correct.

  •  

    $593 thousand.

  •  

    $665 thousand.

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