Smith Company has a defined benefit plan for its employees. At the end of the year, the projected benefit obligation is more than the fair value of the plan assets. What is the funded status of the plan and how will it be reported on the balance sheet?

Select one:

a. Underfunded, reported as noncurrent asset

b. Underfunded, reported as noncurrent liability

c. Overfunded, noncurrent liability

d. Overfunded, noncurrent asset