Data for 2016 were as follows: PBO,January 1,$240,000 and December 31,$270,000;pension plan assets (fair value)January 1,$180,000,and December 31,$230,000.The projected benefit obligation was underfunded at the end of 2016 by:

Question

Quizplus · Accepted Answer

Underfunded amount = PBO - Plan assets
At the end of 2016, the underfunded amount = $270,000 - $230,000 = $40,000. Therefore, the correct choice is (D) $40,000.

Data for 2016 Were as Follows: PBO,January 1,$240,000 and December