Question

Data for 2021 were as follows: PBO, January 1, $246,000 and December 31, $276,000; pension plan assets (fair value) January 1, $190,000, and December 31, $239,000. The projected benefit obligation was underfunded at the end of 2021 by:

Answer 1

Answer: $37000

Step-by-step explanation:

The projected benefit obligation was underfunded at the end of 2021 by:

PBO December 31 = $276,000

Less: Pension plan assets (fair value) December 31 = $239,000.

Then, the projected benefit obligation was underfunded at the end of 2021 by ($276000 - $239000) = $37000