At December 31, 2006, the following information was provided by the Kerr Corp. pension plan administrator:
align=”left”>
|
Fair value of plan assets |
$3,450,000 |
|
Accumulated benefit obligation |
4,300,000 |
|
Projected benefit obligation |
5,700,000 |
Assume Kerr is a publicly traded company. 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