Cookie Co. maintains a defined benefit pension plan. Two of its employees are entitled to the pension plan. The first employee, Marga, will be paid a lump sum amount equal to 5% of final years salary for every year of service upon retirement. The second employee, Mandy, will be paid an annual pension equivalent to 0.5% of the final years salary for every year of service which is payable at the end of each year after retirement. His retirement is expected to span 10 years. As of January 1, 2020, the following information relates to the two employees:

>Both employees have rendered service for 15 years each.

>Both employees are being paid $1,000,000 each and is expected to increase by 8% annually.

>Both employees are expected to retire after another 20 years.

Additionally, the interest on high quality corporate bonds is 7% for 2020 and 2021.

Required:

1. How much is the projected benefit obligation (PBO) as of December 31, 2020 with respect to Marga?

2. How much is the projected benefit obligation (PBO) as of December 31, 2020 with respect to Mandy? This is a topic of employee benefits in relation to current service cost; interest cost; past service cost; lump sum pension payment; annual pension payment; actuarial gains and losses