A president of JR and RJ Corporation shall receive a 20% retirement benefit based on the final salary per year for a period of 3 years. The president does not contribute to the plan. The discount rate to be used is 5%. The projected salary over three years (2020, 2021, 2022) are P500,000, P600,000, and P720,000, respectively. PV@ 5% for one period, 0.9524 PV@ 5% for two periods, 0.9070 1. What is the annual benefit to be used in computing the estimated pension liability? 2. What is the estimated pension liability as of December 31, 2021 using the projected unit credit method?

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A president of JR and RJ Corporation shall receive a 20% retirement benefit based on the final salary per year for a period of 3 years. The president
does not contribute to the plan. The discount rate to be used is 5%. The projected salary over three years (2020, 2021, 2022) are P500,000, P600,000, and P720,000, respectively. PV@ 5% for one period, 0.9524 PV@ 5% for two periods, 0.9070

1. What is the annual benefit to be used in computing the estimated pension liability?
2. What is the estimated pension liability as of December 31, 2021 using the projected unit credit method?

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