The following information pertains to Havana Corporation's defined benefit pension plan: 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.
Correct Answer:
Verified
Q33: Compared to the ABO, the PBO usually
Q34: To help assess the uncertainties that surround
Q35: Consider the following:
I. Present value of
Q36: Interest cost will:
A) Increase the PBO and
Q37: Mars Inc. has a defined benefit pension
Q39: Compared to the ABO, the PBO usually
Q40: The PBO is increased by:
A) An increase
Q41: Pension expense is decreased by:
A) Amortization of
Q42: A net gain or loss affects the
Q43: Which of the following is true?
A) A
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