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The following is the only information pertaining to Kane Co.s defined benefit pension plan: Pension asset, January 1, Year 1 $ 2,000 Service cost 19,000

The following is the only information pertaining to Kane Co.s defined benefit pension plan:

Pension asset, January 1, Year 1 $ 2,000

Service cost 19,000

Interest cost 38,000

Actual and expected return on plan assets 22,000

Amortization of prior service cost arising in a prior period 52,000

Employer contributions 40,000

In its December 31, Year 1, balance sheet, what amount should Kane report as the unfunded or overfunded projected benefit obligation (PBO)?

a. $ 7,000 overfunded.

b. $15,000 underfunded.

c. $45,000 underfunded.

d. $52,000 underfunded.

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