Barkley Corporation received the following report from its actuary at the end of the year:
December 31, 2007 December 31, 2008
Projected benefit obligation $1,600,000 $1,800,000
Market-related asset value 1,400,000 1,420,000
Accumulated benefit obligation 1,300,000 1,480,000
Fair value of pension plan assets 1,380,000 1,440,000
Prepaid pension cost 80,000 100,000
Assume that no prepaid or accrued pension cost exists on January 1, 2007.
The amount reported as the total pension liability at December 31, 2007 is
A) $ -0-.
B) $200,000.
C) $220,000.
D) $300,000.