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Traveltime Tours has a defined benefit pension plan. As a new employee, you are interested in the future well-being of the plan. To help

Traveltime Tours has a defined benefit pension plan. As a new employee, you are interested in the future Required: 1. What was the funded status of Traveltime's pension plan in Year 2? 2. In which years did

Traveltime Tours has a defined benefit pension plan. As a new employee, you are interested in the future well-being of the plan. To help you visualize your assessment, you use your Excel skills to graph the key numbers. The line graph below plots the balances of the company's Projected Benefit Obligation and its Plan Assets over the most recent six years. BALANCES DEFINED BENEFIT PENSION PLAN -Projected Benefit Obligation $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 --Pension Plan Assets 1 2 3 Click here to open the graph(s) in a new tab. Required: YEAR 4 5 6 Required: 1. What was the funded status of Traveltime's pension plan in Year 2? 2. In which years did Traveltime report a Net Pension Liability? 3. In which years was Traveltime's pension plan overfunded? 4. What might have been the primary reason for the pension plan becoming overfunded?

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SOLUTION Funded Status The funded status of a pension plan can be determined by comparing the Plan Assets to the Projected Benefit Obligation PBO If the Plan Assets are greater than the PBO the plan i... blur-text-image

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