Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i domt know why its wrong Pronghorn, Inc is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor
i domt know why its wrong
Pronghorn, Inc is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2025, Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement 15 years Expectedlife duration after retirement 11 years Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. $816,100 per year The interest rate to be used is 8%. Click here to view factor tables. On the basis of the information above, determine the present value of the pension obligation (liability). (Round factor values to 5 decimal places, es. 1.25124 and final answer to 0 decimal places, es. 458,581) The present value of pension obligation (liability) \$\$ Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started