Manuka Ltd Has Seven Employees Who Are Entitled to Long-Service

Manuka Ltd has seven employees who are entitled to long-service leave (LSL) .The LSL can be taken after 15 years of service,at which time the employee is entitled to 13 weeks' leave.After 10 years the employee is entitled to a pro rata cash payment on leaving the company.Information about the employees is set out below.
$$\begin{array} { | c | r | c | r | } \hline \begin{array} { c } \text { No. of } \\\text { employees }\end{array} & \begin{array} { c } \text { Current salary } \\\text { per employee }\end{array} & \begin{array} { c } \text { Years of } \\\text { service }\end{array} & \begin{array} { c } \text { Probability \% that } \\\text { LSL will be paid }\end{array} \\\hline 2 & 60000 & 5 & 35 \\\hline 3 & 40000 & 9 & 95 \\\hline 2 & 70000 & 12 & 100 \\\hline\end{array}$$
Other information collected:
$$\begin{array} { | c | r | r | } \hline\begin{array} { c } \text { Periods to } \\\text { maturity }\end{array} & \begin{array} { c } \text { Corporate } \\\text { bond rate (\%) }\end{array} & \begin{array} { c } \text { Risk-adjusted discount } \\\text { rate for Manuka Ltd (\%) }\end{array} \\\hline 8 & 7.50 & 9.00 \\\hline 5 & 6.25 & 8.00 \\\hline 4 & 6.00 & 7.25 \\\hline 1 & 4.50 & 5.50 \\\hline\end{array}$$
The inflation rate for the foreseeable future is 2%.The future salaries of the employees are expected to keep pace with inflation but not increase as a result of promotion.Based on the information provided,what should the balance of the long-service leave provision account be (rounded to the nearest dollar) ?

A) $47 163
B) $47 146
C) $47 545
D) $20 991