Multiple Choice
Gage began a defined benefit pension plan on January 1, 2014. During 2014, the service cost was $450,000. Gage contributed $450,000 to the pension plan for 2014. The actuary said the projected benefit obligation at December 31, 2014 was $450,000. As of December 31, 2014, what statements can Gage make about the pension plan?
I.The pension plan is fully funded.
II.Gage does not need to report a liability regarding the pension plan at December 31, 2014.
A) I
B) II
C) both I and II
D) neither I nor II
Correct Answer:
Verified
Correct Answer:
Verified
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