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.