Reference no: EM132583432
Sunland Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2018:
Projected benefit obligation $784000
Accumulated benefit obligation 593000
Fair value of plan assets 920000
Service cost 270000
Interest on projected benefit obligation 30000
Amortization of prior service cost 72000
Expected and actual return on plan assets 100500
Question 1: The market-related asset value equals the fair value of plan assets. No contributions have been made for 2018 pension cost. In its December 31, 2018 balance sheet, Sunland should report a pension asset / liability of
a) Pension asset of $920000
b) Pension liability of $593000
c) Pension asset of $136000
d) Pension liability of $784000