Journal Entries and Minimum Pension Liability
The following balances relate to the pension plan of Rienstem Transportation Co. at
December 31, 2008 and 2009:
|
|
(in thousands) |
|
|
|
Dec 31, 2008 |
Dec 31, 2009 |
|
PBO |
$3,075 |
$3,160 |
|
ABO |
2,804 |
2,907 |
|
Fair value of the pension fund |
2,754 |
2,532 |
|
Market related value of the pension fund |
2,550 |
2,750 |
|
Unrecognized prior service cost |
240 |
215 |
|
Prepaid/(accrued) pension cost |
15 |
(30) |
|
Unrecognized net pension loss |
96 |
383 |
Instructions:
1. Determine whether a minimum pension liability adjustment is required at December 31, 2008 and 2009.
2. Prepare journal entries at December 31, 2008 and 2009, to record any additional liability.