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The following information pertains to Havana Corporation's defined benefit pension plan:

The following information pertains to Havana Corporation's defined benefit pension plan:

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.
7. What is the 2011 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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