Penny Pincher Company has a defined benefit pension plan for its emploees. The following pension data avialable at year-end(in millions)

Accumulated benefit obligation $ 142

Projected benefit obligation $ 205

Fair Value of plan assets $ 175

a.Calculate the 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 liabilites in your explanation.

c. What amount will Penny Pincher have to reportin its balanca sheet? Is it an asset or a liability?