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Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2015, the...

Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2015, the market value of the plan assets is less than the accumulated benefit obligation. The projected benefit obligation exceeds the accumulated benefit obligation. In its balance sheet as of December 31, 2015, Ohlman should report a liability in the amount of what

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Answer #1

Ans: Excess of the projected benefit obligation over the

accumulated benefit obligation.

Explanation:

1) According to the FASB, recognition of a liability is required when the projected benefit obligation exceeds the fair value of plan assets.

2)

The Pension Liability account represents The excess of the PBO over the Plan Assets,
The Pension Asset account represents The excess of the Plan Assets over the PBO.
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