Question

Data for 2021 were as follows: PBO, January 1, $243,000 and December 31, $278,000; pension plan assets (fair value) January 1, $186,000, and December 31, $233,000. The projected benefit obligation was underfunded at the end of 2021 by:

Answer 1

$45,000

Step-by-step explanation:

Computation for the projected benefit obligation

December 31 PBO($278,000)

December 31 Plan assets 233,000

Funded status($45,000)

Therefore the projected benefit obligation was underfunded at the end of 2021 by: $45,000