Question: Nome Company sponsors a defined benefit plan covering all employees. Benefits are based on years of service and compensation levels at the time of retirement. Nome has a September 30 fiscal year-end. It determined that as of September 30, 2014, its ABO was $320,000, its PBO was $380,000, and its plan assets had a $290,000 fair value. Nome's September 30, 2014, trial balance showed a balance sheet asset of $20,000.
Required: What adjustment should Nome make to report the appropriate pension asset (liability) on its September 30, 2014, balance sheet?