At December 31, 2006, the following information was provided by the Kerr Corp. pension plan administrator:
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|
Fair value of plan assets |
$3,450,000 |
|
Accumulated benefit obligation |
4,300,000 |
|
Projected benefit obligation |
5,700,000 |
Assume Kerr is a nonpublicly traded company that has not elected to early adopt SFAS 158. What is the amount of the pension liability that should be shown on Kerr’s December 31, 2006 balance sheet?
- $5,700,000
- $2,250,000
- $1,400,000
- $ 850,000