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  3. mallard company sponsors a pension plan with the f

Mallard Company sponsors a pension plan with the following pension benefit: Benefit paid...

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Accounting

Mallard Company sponsors a pension plan with the following pension benefit:
Benefit paid at each year-end during retirement =(Number of years worked x Annual salary at retirement)-: 25
Employee Josie began work with the company and received credit for service as of January 1 of Year 1. Josie is expected to work a total of 30 years with an annual salary at retirement of $100,000. She is expected to draw 10 years of retirement benefits. The discount rate is 10%.
Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
a. Compute the PBO on December 31 of Year 10, if Josies current salary is $30,000.
b. Compute the ABO on December 31 of Year 10, if Josies current salary is $30,000.

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