A corporation has a defined-benefit plan. A pension liability will result at the end of the year if the
a. projected benefit obligation exceeds the fair value of the plan assets.
b. fair value of the plan assets exceeds the projected benefit obligation.
c. amount of employer contributions exceeds the pension expense.
d. amount of pension expense exceeds the amount of employer contributions.
Answer: projected benefit obligation exceeds the fair value of the plan assets
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