b. Describe the effect of the 2000 discount rate changes on 2000 and 2001. (i) Service cost (ii) Interest cost (iii) Net pension cost (iv) PBO

c. Estimate how Ford arrived at its reported interest cost for 1999 and 2000 using the reported PBO

d. Calculate the actual rate of return on Ford's U.S. plan assets for 1999 and 2000.

e. In 2000, Ford increased the expected return on plan assets used to calculate pension expense for its U.S. plans Estimate the effect of this change on Forc's 2000 (i) Pension cost (ii) Year-end plan status (iii) Year-end balance sheet

f. State the most likely explanation for the actuarial loss in 2000 and the actuarial gain in 1999.