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Suppose that Academia Sporting Goods pension plan has a fair value above the present value of the estimated pension obligation. Then in the following year,
Suppose that Academia Sporting Goods pension plan has a fair value above the present value of the estimated pension obligation. Then in the following year, due to an economic downturn, the status flips, and now the fair value is less estimated pension obligation. The debt to asset ratio will
exhibit no change because the changes offset each other
decrease
increase
stay the same because this is off balance sheet
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