The following information pertains to Havana Corporation\'s defined benefit pens

Question

The following information pertains to Havana Corporation's defined benefit pension plan:
($ in 000s)                       2011                                     2012    
                                        Beginning Beginning             balances balances

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 2011, 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 Havana's 2011 actual return on plan assets?

A. $504 thousand
B. $1,128 thousand
C. $6,336 thousand
D. $618 thousand

Explanation / Answer

All Amounts in $ thousand

Havana Corporation

2011 Actual Return on Plan Assets = Increase in Plan Assets from 2011 to 2012 - Pension Fund Contributions + Benefit Payments

= 6,336 - 5,760 - 696 + 624 = 576 - 72 = $ 504 thousand.

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