Bob and George Corporation has a defined benefit pension plan for one employee. Annual payments are equal to the employees highest lifetime salary multiplied by 2.5% multiplied by the number of years with the entity. As of December 31, 2020, the employee has been with the company for 15 years and has a salary of P1,000,000. The employee is expected to retire in 25 years while projected salary increases are in line with forecasted inflation rates of 3% annually. The employee is then expected to live for 15 years after retiring and will receive the first pension payment one year after the retirement. Discount rate is 8% and PV and FV factors are as follows:

FV of 1 at 3% for 25 periods: 2.094

PV of ordinary annuity of 1 at 8% for 15 periods: 8.559

PV of 1 at 8% for 25 periods: 0.146

1. What is the annual pension payment to be used in computing the projected benefit obligation as of December 31, 2020?

2.What is the projected benefit obligation as of December 31, 2020?