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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Question
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
What is the 2021 pension expense for Foundry’s plan?
Multiple Choice
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$498 thousand.
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None of these are correct.
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$593 thousand.
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$665 thousand.
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