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.
