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Hava Corporation's defined benefit pension plan

The following information reconciles the funded status of Hava Corporation's defined benefit pension plan with the amount reported in its balance sheet for the prepaid (accrued) pension:

($ in 000s) 2006 2006
Beginning balances Ending balances
Projected benefit obligation ($6,000) ($6,504)
Plan assets 5,760 6,336
Funded status ($240) ($168)
Unamortized prior service cost 600 552
Unamortized net loss 720 672
Prepaid (accrued) pension cost $ 1,080 $ 1,056

At the end of 2006, Hava 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.

14.What is Hava's 2006 actual return on plan assets?
A)$504 thousand
B)$618 thousand
C)$1,128 thousand
D)None of the above is correct.

15.What is Hava's 2006 gain or loss on plan assets?
A)$115.2 thousand
B)$160.8 thousand
C)$276 thousand
D)None of the above is correct.

16.What is the 2006 service cost for Hava's plan?
A)$276 thousand
B)$528 thousand
C)$648 thousand
D)Cannot be determined from the given information.

17.What is the 2006 pension expense for Hava's plan?
A)$594 thousand
B)$606 thousand
C)$678 thousand
D)None of the above is correct.

18.Assume the actuary estimates the net cost of providing health care benefits to a particular employee during his retirement years to have a present value of $60,000. If the benefits relate to an estimated 25 years of service and five of those years have been completed,
A) The EPBO would be $12,000.
B) The EPBO would be $8,400.
C) The APBO would be $8,400.
D) The APBO would be $12,000.

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