Assume that the pension benefit formula of ABC Corporation calls for paying a pension benefit of $250 per year for each year of service with the company plus 50 of the projected last years salary at retirement Payments begin one year after the employee attains the age of 65 and are paid annually thereafter The average life expectancy of employees is 76 The pension plan is adopted on January 1, 2017 One of the companys employees, I M Workaholic, is granted credit for 10 years of prior service He is 50 years old at the date the plan is adopted His current annual salary is $20,000, but his salary level when he retires in 15 years is expected to be $30,000 Assume a 10 rate of interest for both the discount rate and the expected rate of return on plan assets Use the PV of 1, PVAD of 1, and PVOA of 1 tables where appropriate (Use the appropriate factor(s) from the tables provided ) Required Determine the PBO and ABO related to Workaholics pension benefits as of January 1, 2017 What would the projected benefit obligation be on December 31, 2017 How much pension expense should ABC Corporation recognize in 2017 for Workaholic Show the components of pension expense Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Reg 1 Req 2 and 3 Determine the PBO ABO related to workaholic's pension benefits as of January 1, 2017 1 a $ 113,613 $ 27,165 $ 81,188 $ 19,404 PVOA of expected pension benefits at date of retirement Projected benefit obligation (PBO) on 1 1 2017 PVOA of expected pension benefits at date of retirement Accumulated benefit obligation (ABO) on 1 1 2017 1 b Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Reg 1 Req 2 and 3 2 What would the projected benefit obligation be on December 31, 2017 3 How much pension expense should ABC Corporation recognize in 2017 for Workaholic 2 PVOA of expected pension benefits at date of retirement Projected benefit obligation (PBO) on 12 31 2017) Total pension expense for 2017 $ 15,000 $ 30,320 $ 4,956 3

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Assume that the pension benefit formula of ABC Corporation calls for paying a pension benefit of $250 per year for each year of service with

Assume that the pension benefit formula of ABC Corporation calls for paying a pension benefit of $250 per year for each year of service with the company plus 50% of the projected last years salary at retirement. Payments begin one year after the employee attains the age of 65 and are paid annually thereafter. The average life expectancy of employees is 76.

The pension plan is adopted on January 1, 2017. One of the companys employees, I.M. Workaholic, is granted credit for 10 years of prior service. He is 50 years old at the date the plan is adopted. His current annual salary is $20,000, but his salary level when he retires in 15 years is expected to be $30,000.

Assume a 10% rate of interest for both the discount rate and the expected rate of return on plan assets. Use the PV of 1, PVAD of 1, and PVOA of 1 tables where appropriate. (Use the appropriate factor(s) from the tables provided.)

Required:

Determine the PBO and ABO related to Workaholics pension benefits as of January 1, 2017.
What would the projected benefit obligation be on December 31, 2017?
How much pension expense should ABC Corporation recognize in 2017 for Workaholic? Show the components of pension expense.

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Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Determine the PBO/ABO related to workaholic's pension benefits as of January 1, 2017. 1- a $ 113,613 $ 27,165 $ 81,188 $ 19,404 PVOA of expected pension benefits at date of retirement Projected benefit obligation (PBO) on 1/1/2017 PVOA of expected pension benefits at date of retirement Accumulated benefit obligation (ABO) on 1/1/2017 1- b Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 2. What would the projected benefit obligation be on December 31, 2017? 3. How much pension expense should ABC Corporation recognize in 2017 for Workaholic? 2. PVOA of expected pension benefits at date of retirement Projected benefit obligation (PBO) on 12/31/2017) Total pension expense for 2017 $ 15,000 $ 30,320 $ 4,956 3.