CASE 14-5 Pension Funding Status Penny Pincher Company has a defined benefit pension plan for its employees. The following pension data are available at year-end (in millions): Accumulated benefit obligation $142 Projected benefit obligation 205 Fair value of plan assets 175 There is no balance in prepaid/accrued pension costs. Required: a. Calculate the funded status of the plan (see SFAS No. 158 for a definition of funded status). Is the plan overfunded or underfunded? b. If the projected benefit obligation provides the appropriate measure of the company's obligation for pension benefits and the assets in the fund are viewed as satisfying all or part of that obligation, what is Penny Pincher's liability, if any, for the pension plan at year-end? Explain, citing the Conceptual Framework's definition of liabilities in your explanation. c. What amount will Penny Pincher have to report in its balance sheet? Is it an asset or a liability