General Electric had a $12.4 billion net asset position for 2002 and income from pensions of $2.1 billion. GE's funded status was $14.6 billion. GE reported an expected return on plan assets of $4.3 billion (part of income from pensions), but the actual return on plan assets was a loss of $2.9 billion. This indicates that:

a.

GE's pension plan was overfunded by $12.4 billion according to GAAP

b.

Because of the smoothing requirements of FASB, GE reported pension income, rather than a substantial loss because the actual return on plan assets was a large loss

c.

GE's pension plan actually decreased net income for the year

d.

GE's funded status indicated that the smoothing requirements of GAAP resulting in the net asset position of GE actually was understated by $22.2 billion