Computing and Recording Minimum Pension Liability Burbank Power Co. has had a retirement program for… 1 answer below »

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:

 

PBO                                                                    

$1,023,000

ABO                                                                    

945,000

FVPF                                                                    

880,000

Market-related value of the pension fund (5-year weighted average)                       

820,000

Prepaid pension cost                                                         

35,000

Unrecognized prior service cost                                                 

139,000

Unrecognized net pension loss                                                 

48,700

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.

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