Question:  What if the ABO at 12/31/2007 had been $810,000?  How would this fact change
the calculations and entries?
HINT:  the sum of the accrued/prepaid pension cost and the additional minimum liability
must = the amount of the difference between the ABO and the Plan assets.

Does an additional minimum liability need to be recognized for 2007?
 (para 35-38)

12/31/2007 plan assets. . . . . . . . . . . . . . . . . $ 760,000
12/31/2007 accumulated benefit obligation . . . . . . .   810,000
Amount of liability to be recognized. . . . . . . . . . $  50,000
 
 

Amount of existing pension asset/liability:
1/1/207 balance-accrued pension cost . . . . .$ 43,500
    pension cost. . . . . . . . .  $ 186,740
    funding . . . . . . . . . . .    260,000
reduction in accrued pension cost               73,260
12/31/2007 balance-prepaid pension cost. . . . . . . . . $  29,760

Currently, there is an Additional Minimum Liability on the books, prior to adjustment for 2007, of $71,500.

Additional Minimum Liability   +  accrued pension cost or  -  prepaid pension cost = Amt of Liability to be recognized:
AML  - Prepaid pension cost = $50,000
AML = $50,000 + Prepaid pension cost
AML = $50,000 + $29,760
AML = 79,760

Adjustment needed:
Additional Minimum liabiltiy on the books, prior to adjustment   $71,500
Additional Minimum liability needed                                                79,760
  amount of adjustment needed                                                         8,260