The following balances relate to the defined benefit pension plan of Todd Industries

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The following balances relate to the defined benefit pension plan of Todd Industries.

	Dec. 31, 2005	Dec. 31, 2006
Fair value of plan assets ...........	$414,000	$517,500
Market-related value of plan assets .	370,800	471,000
Projected benefit obligation ........	487,500	611,400
Accumulated benefit obligation ......	442,500	555,000
Prepaid/(accrued) pension cost ......	(18,300)	11,100
Unrecognized prior service cost .....	34,500	27,900

 

1. 1. Determine the minimum pension liability, if any, at December 31, 2005 and December 31, 2006.
   2. Prepare journal entries for the minimum liability adjustment, if any, at December 31, 2005, and December 31, 2006. Assume that the company had no previously re- cognized additional pension liability under FASB Statement No. 87.