Computing and Recording Minimum Pension Liability
Burbank Power Co. has had a retirement program for its employees for several years. The following information relates to the plan for 2008.
Balances at December 31, 2008:
Market-related value of the pension fund (5-year weighted average)
Prepaid pension cost
Unrecognized prior service cost
Unrecognized net pension loss
In prior years, no additional liability was required. Compute the minimum pension liability, if any, for 2008, and prepare any necessary journal entries to record the minimum liability.