In 20X6, General Dynamics (GD) Had a Prepaid Pension Asset

Multiple Choice

In 20X6, General Dynamics (GD) had a Prepaid Pension Asset of $12.4 billion, total assets of $495 billion, and net income of $13.7 billion. This means that

A) GD's pension plan was underfunded by $12.4 billion.
B) GD recorded a nonrecurring item on the income statement for $12.4 billion.
C) GD's pension plan was overfunded by $12.4 billion.
D) GD had extraordinary liabilities of $12.4 billion.