how to calculate annual pension liability

Question

Foster Corporation received the following report from its actuary at the end of the year:

                                                                         December 31. 2012         December 31. 2013

Projected benefit obligation                                     $1,800,000                 $2,000,000

Accumulated benefit obligation                               1,300,000               1,480,000

Fair value of pension plan assets                           1,380,000                 1,440,000

The amount reported as the pension liability on Foster’s balance sheet at December 31,

2012 is

a, $ -0-.

b. $400,000.

c. $420,000.

d. $500,000.