The following information applies to Babydoll Company's defined benefit pension plan at December 31, Year 8: i (Click the icon to view the information.) The company's employees have an average remaining service life of 10 years. The company has no unrecognized net gains or losses. What is the funded status of Babydoll's pension plan at December 31, year 7? O A. $250,000 underfunded. B. $195,000 overfunded. OC. $195,000 underfunded. More Info OD. $250,000 overfunded. Projected benefit obligation, December 31, Year 7 Projected benefit obligation, December 31, Year 8 Fair value of plan assets, December 31, Year 7 Fair value of plan assets, December 31, Year 8 Unrecognized prior service cost, December 31, Year 7 Year 8 service cost Expected benefits payable - year Discount rate Expected rate of return on plan assets $2,000,000 2,220,000 1,750,000 2,025,000 500,000 200,000 400,000 6% 8% Print Done Done Click to select your