Gage began a defined benefit pension plan on January 1, 2015. During 2015, the service cost was $450,000. Gage contributed $450,000 to the pension plan for 2015. The actuary said the projected benefit obligation at December 31, 2015 was $450,000. As of December 31, 2015, what statements can Gage make about the pension plan?

I.The pension plan is fully funded.

II.Gage doesnotneed to report a liability regarding the pension plan at December 31, 2015.

A. I

B. neither I nor II

C. both I and II

D. II