Mary Abbott is a long-time employee of Love Enterprises, a manufacturer and distributor of farm implements. Abbott plans to retire on her 65th birthday, five years from January 1, 2017. Her salary at January 1, 2017 is $48,000 per year, and her projected salary for her last year of employment is $60,000.

Love Enterprises sponsors a defined benefit pension plan. It provides for an annual pension benefit equal to 60% of the employees annual salary at retirement. Payments commence one year after the anniversary date of his or her retirement. The discount and earnings rate on plan assets is 8%. The average life expectancy for employees is 80. Using (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.)

Required:

1. Compute the PBO related to Abbotts pension benefits as of January 1, 2017.
2. Compute the ABO for the year ended December 31, 2017.

Mary Abbott is a long-time employee of Love Enterprises, a manufacturer and distributor of farm implements. Abbott plans to retire on her 65th birthday, five years from January 1, 2017. Her salary at January 1, 2017 is $48,000 per year, and her projected salary for her last year of employment is $60,000. Love Enterprises sponsors a defined benefit pension plan. It provides for an annual pension benefit equal to 60% of the employee's annual salary at retirement. Payments commence one year after the anniversary date of his or her retirement. The discount and earnings rate on plan assets is 8%. The average life expectancy for employees is 80. Using (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required: 1. Compute the PBO related to Abbott's pension benefits as of January 1, 2017. 2. Compute the ABO for the year ended December 31, 2017. (For all requirements, round your final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. 1. Pension benefit obligation Accumulated Benefit Obligation $ 209,714 $ 167,772 2