The following information pertains to Havana Corporation's defined benefit penslon plart 2022 Beginning 2021 ($ in thousands) Beginning balances balances Projected benefit obligation Plan asseta Prior service cost-AOCI S(6,900) 6,660 $(7,404) 7,236 690 610 Net loss-AOCI 810 886 At the end of 2021, Havana contributed $680 thousand to the pension fund and benefit payments of $684 thousand were made to retirees. The expechd rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBo. What is the 2021 service cost for Havana'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 9MC
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The following information pertains to Havana Corporation's defined benefit pension plart
2021
2022
Beginning
Beginning
balances
(S in thousands)
Projected benefit obligation
Plan asseta
Prior service cost-AOCI
Net loss-AOCI
balances
$(6,900)
6,660
$(7,404)
7,236
690
610
810
886
At the end of 2021, Havana contributed $680 thousand to the pension fund and benefit payments of $684 thousand were made to retirees. The
expeched rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions
regarding the PBO.
What is the 2021 service cost for Havana's plan?
Transcribed Image Text:The following information pertains to Havana Corporation's defined benefit pension plart 2021 2022 Beginning Beginning balances (S in thousands) Projected benefit obligation Plan asseta Prior service cost-AOCI Net loss-AOCI balances $(6,900) 6,660 $(7,404) 7,236 690 610 810 886 At the end of 2021, Havana contributed $680 thousand to the pension fund and benefit payments of $684 thousand were made to retirees. The expeched rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 service cost for Havana's plan?
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