O'Brien began a defined benefit pension plan on January 1, 2010.During 2010, the service cost was $450, 000.O'Brien contributed $450, 000 to the pension plan for 2010.The actuary said the projected benefit obligation at December 31, 2010 was $450, 000.As of December 31, 2010, what statements can O'Brien make about the pension plan?

Question

Quizplus · Accepted Answer

Statement I: O'Brien's pension plan is fully funded for the year 2010 as O'Brien contributed the exact same amount as the service cost. This statement is true as the contribution made by O'Brien is equal to the service cost.
Statement II: The projected benefit obligation at December 31, 2010, was $450,000, indicating that the plan was adequately funded at the end of the year. This statement is true as the projected benefit obligation of $450,000 is exactly the same as the contribution made by O'Brien, indicating that the plan was adequately funded.

O'Brien Began a Defined Benefit Pension Plan on January 1