The following balances relate to the pension plan of Rienstem Transportation Co. at December 31, 2008 and

Question:

The following balances relate to the pension plan of Rienstem Transportation Co. at December 31, 2008 and 2009:

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 additionalliability.

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Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Question Posted: Apr 08, 2012 01:00 PM

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The following balances relate to the pension plan of Rienstem Transportation Co. at December 31, 2008 and

Question:

(in thousands) Dec. 31, 2008 Dec. 31, 2009 PBO ABO Fair value of the pension fund. Market-related value of the pension fund Unrecognized prior service cost Prepaid/(accrued) pension cost $3,075 2,804 2,754 2,550 240 15 96 $3,160 2,907 2,532 2,750 215 (30) Unrecognized net pension loss 383

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1 Computation of additional pension liability at December 31 2008 Accumulated benefit obligation Dec...View the full answer

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