Kent, Inc., a calendar-year company, established a defined benefit pension plan in December year 1. The following data relate to this plan at December 31, year 3:

Projected benefit obligation$4,700,000
Accumulated benefit obligation4,000,000
Total fair value of plan assets3,000,000

In its December 31, year 3 balance sheet, Kent should report a liability relating to the pension plan of

A. $1,700,000
B. $4,000,000
C. $1,000,000

D. $0

Answer rating: 100% (QA)

Correct Answer a liability of 1700000 must be recognized on t... View the full answer