Under FASB rules, explain whether the full effect of each of the following factors that affect the pension plan is shown in net income, or whether part of the effect is in “other comprehensive income.”

A. Employees worked during the year, and the company’s actuaries say that the “service cost” related to their work increased the present value of the pension liability by $30 million.

B. Because more of the employees have become very stressed, they have started smoking heavily. The company’s actuaries have changed their estimates, and believe that the employees will die sooner, and therefore have decreased their estimate of the pension liability by $40 million.

C. The pension liability was stated last year at its present value. Over the course of the year, the obligation has come one year nearer to having to be paid. The “interest costs” of discounting the liability less is $5 million.

D. The pension plan has investments in the stock market. This year the stock market rose much more than the normal 5% earnings expected by the actuaries.