Mallard Company sponsors a pension plan with the following pension benefit:

\[ \underset{\text { Benefit paid at each }}{\text { year-end during retirement }}=\frac{\text { Number of years worked } \times \text { Annual salary at retirement }}{25} \]

Credit for service began January 1, 2010, Josie's first day with the company. 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 \(10 \%\).

Required

a. Compute the PBO on December 31,2019 , if Josie's current salary is \(\$ 30,000\).

b. Compute the \(\mathrm{ABO}\) on December 31,2019 , if Josie's current salary is \(\$ 30,000\).