The Following Information Pertains to Havana Corporation's Defined Benefit Pension

question 229

Multiple Choice

The following information pertains to Havana Corporation's defined benefit pension plan: $\begin{array}{lrr}\$ 111000 \mathrm{~s}) &2018 & 2019 \\&\text { Beginning } & \text { Beginning } \\&\text { Beginning } & \text { Beginning } \\\text { Projected benefit obligation } & \$(6,000) & \$(6,504) \\\text { Plan assets } & 5,760 & 6,336 \\\text { Prior service cost-AOCI } & 600 & 552\\\text { Net loss-AOCI }&720,786\end{array}$ At the end of 2018, 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.
- What is the 2018 service cost for Havana's plan?

• A) $276 thousand.
• B) $528 thousand.
• C) $648 thousand.
• D) Cannot be determined from the given information.

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