on the basis of information provided, determine the present value of the pension obligation (liability)

e lo similar financial instruments is 10%. As the controller of the company, determine the selling price of the E6-14 (L05) (Computation of Pension Liability) Nerwin, Inc. is Recently, after a long negotiation with the local labor union, the compan pensation plan. The plan will start on lanuary 1, 2017. Each employee covered year after retirement. As required by accounting standards, the com (liability). On the basis of a discussion with the supervisor of the Person pany, the controller develops the following information related to the ning price of the bonds. Inc. is a furniture manufacturing company with y with 50 employees. company decided to initiate a pension plan as a part of its com- overed by the plan is entitled to a pension payment each troller of the company needs to report the pension obligation howing information related to the pension plan. Personnel Department and an actuary from an insurance com- 15 years 10 years Average length of time to retirement Expected life duration after retirement Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. $700,000 per year The interest rate to be used is 8%