16. The T Company initiated a defined-benefit pension plan for its CEO on January 1, 2009. The CEO is expected to work through the end of 2018 (10 years). Trms of the pension plan are as follows: 1.The plan states the CEO would be paid 8% per year of service, times his terminal salary in a single lump-sum on his retirement date. The company has not amended the plan (i.e., there is no prior service cost) 2. The CEOs expected terminal salary is estimated at $100,000 3. The company has determined that a 10% interest rate is appropriate for purposes of calculating interest on the projected benefit obligation. The Company has determined that a 5% rate would be appropriate in calculating the expected return on plan assets 4. The T Company puts $5,000 into the plan assets at the end of every year starting at the end of 2009. Actual final balances reported by the plan trustee are shown below. Accumulated Actual FMV End of Year: 2009 2010 2011 at Year-End $5,000 12,000 18,000 16. The T Company initiated a defined-benefit pension plan for its CEO on January 1, 2009. The CEO is expected to work through the end of 2018 (10 years). Trms of the pension plan are as follows: 1.The plan states the CEO would be paid 8% per year of service, times his terminal salary in a single lump-sum on his retirement date. The company has not amended the plan (i.e., there is no prior service cost) 2. The CEOs expected terminal salary is estimated at $100,000 3. The company has determined that a 10% interest rate is appropriate for purposes of calculating interest on the projected benefit obligation. The Company has determined that a 5% rate would be appropriate in calculating the expected return on plan assets 4. The T Company puts $5,000 into the plan assets at the end of every year starting at the end of 2009. Actual final balances reported by the plan trustee are shown below. Accumulated Actual FMV End of Year: 2009 2010 2011 at Year-End $5,000 12,000 18,000