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

Question 38

Multiple Choice

The following information pertains to Havana Corporation's defined benefit pension plan: $111000 s) 20182019 Beginning  Beginning  Beginning  Beginning  Projected benefit obligation $(6,000) $(6,504)  Plan assets 5,7606,336 Prior service cost-AOCI 600552 Net loss-AOCI 720,786\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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