A company has a defined benefit pension plan for its employees. On December 31, year 1, the accumulated benefit obligation is $91,800, the projected benefit obligation is $136,200, and the fair value of the plan assets is $124,000.

What amount, if any, related to the defined benefit plan should be recognized in the balance sheet at December 31, year 1?

• A.

  An unrealized loss of $12,200

• B.

  A liability of $12,200

• C.

  A liability of $44,400

• D.

  nothing, as the fair value of the plan assets exceeds the accumulated benefit obligation