The projected benefit obligation was underfunded at the end of 2021 by: $40,000
Solution:
Given,
PBO, January 1, $240,000
December 31, $270,000
pension plan assets (fair value) January 1, $180,000
December 31, $230,000
Now ,
The projected benefit obligation was underfunded at the end of 2021 by :
PBO ($270,000)
Plan assets 230,000
Funded status ($40,000) [ $270,000 - 230,000 ]
∴ The projected benefit obligation was underfunded at the end of 2021 by: $40,000
