The following information pertains to Havana Corporation's defined benefit pension plan: ...
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Accounting
The following information pertains to Havana Corporation's defined benefit pension plan:
($ in 000s)
2016
2017
Beginningbalances
Beginningbalances
Projected benefit obligation
($6,000)
($6,504)
Plan assets
5,760
6,336
Prior service cost-AOCI
600
552
Net loss-AOCI
720
786
At the end of 2016, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO.
Assume that the amortization of Net loss-AOCI for the year 2016 is $30,000 and the service cost is $700,000.
Using information provided for Havana Corporation and the above assumptions, calculate the 2016 pension expense for Havana Corporation:
A. $682,000
C. $634,000
D. $655,000
B. $622,000
E. None of the other answer choices are correct
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