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2 August, 17:02

At the end of 2021, 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 2016 actual return on plan assets?

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  1. 2 August, 17:09
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    Havana's 2016 actual return on plan asset is $504 thousand.

    Explanation:

    Havana's 2016 actual return on plan asset is $504 thousand.

    Let actual return be x.

    Ending balance of plan assets = Beginning balance of plan asset + Actual return + Cash Contributions - Retiree benefits

    $6,336 = $5,760 + x + $696 - $624

    x = $6,336 - $5,760 - $696 + $624

    x = $504 (answer).
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