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Alina [70]
3 years ago
14

Gerhard Company sponsors a defined benefit pension plan. At the end of the current fiscal year, the related pension plan assets

have a fair value of $2 million, the ABO is $1.5 million, and the PBO is $2.2 million. Gerhard's pension plan is
Business
1 answer:
weqwewe [10]3 years ago
4 0

Answer:

$200,000 underfunded

Explanation:

Calculation for Gerhard's pension plan

Using this formula

Pension plan =Fair value -PBO

Let plug in the formula

Pension plan=$2 million-$2.2 million

Pension plan=$200,000 Underfunded

Therefore Gerhard's pension plan is Underfunded by the amount of $200,000

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