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.
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Balances at December 31, 2008:
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PBO
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$1,023,000
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ABO
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945,000
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FVPF
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880,000
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Market-related value of the pension fund (5-year weighted average)
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820,000
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Prepaid pension cost
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35,000
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Unrecognized prior service cost
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139,000
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Unrecognized net pension loss
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48,700
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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.