Harms Inc Reported in Its 2006 Annual Report the Following Information

Harms Inc. reported in its 2006 annual report the following information:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\underline{\text { Plan Status: December 31, } 2006}$

$\begin{array} { l r } \text { Accumulated Benefit Obligation (ABO) } & \$ 90 \text { million } \\ \text { Projected Benefit Obligation (PBO) } & 95 \text { million } \\ \text { Plan Assets (at fair value) } & 80 \text { million } \\ \text { Unrecognized transition asset } & 11 \text { million } \\ \text { Unrecognized actuarial losses } & 1 \text { million }\\\\\text { Assumptions: }\\ \text {Discount rate}&8\%\\ \text {Return on assets}&9\%\\ \text {Compensation growth}&5\% \end{array}$

-Funded status at the end of 2006 was:

A) $15 million.
B) $12 million.
C) $10 million.
D) $0 million.

Correct Answer:

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