13. [Effect of change in accounting method] Effective the year ending October 1, 1999, Lucent [LL] changed its method of calculating the expected return on assets component of pension cost from the market-related method (valuation changes recog- nized over a five-year period) to use of the full market value of plan assets

a. State one advantage and one disadvantage of using the mar- ket-related value of assets to compute the expected return

b. Explam why making the accounting change in 1999 resulted in a greater effect than if the change had been made in 1998.

c. Describe how the accounting change affected pension cost in fiscal year after 1999.

d. In addition to the S427 million effect of the accounting change in fiscal 1999, there was a cumulative effect of $2,150 million. Discuss whether the cumulative effect should be in- cluded in operating income for 1998