4. MAA The June 30, 2018, balance sheet of the person liabilities of $100,000 (and hence a net position of $2,205,657). How could the plan ities of only $100,000 when the preceding schedule indicates that the present value of the employees and retirees was over $3 million? P. 10-3 employee A plan ner position is directly tied to the employer's nel pension liability The CAFR of North Orange included the statement of fiduciary net position for its emplere plan presented here: North Orange Employee Pension Plan Statement of Piduciary Net Position June 3, 2018 (Dollar amounts in thousands) $ 140,279 13,285 8.100 21,385 Assets Cash and cash equivalents Receivables: Contributions Investment income Total receivables Investments: Fixed income securities Domestic equity securities International equities Real estate Total investments Total assets Liabilities Investment fees payable Due to broker for investments purchase Benefits payable to retirees Total liabilities Net position restricted for pensions 1,111,088 2,345,543 870,240 511.112 4,837 983 4.999.647 2,890 230.555 59.231 292,676 $4,706971 1. 2. A note to the statement indicated that the plan net position was 75 percent of the North Orange the employer) total pension liability. From this limited amount of information, can you tell how much North Orange would report as its net pension liability? In light of your response to question #1, how do you explain that benefits payable to retirees are only $59.231? Suppose the city reduced its discount rate from 7.75% to 7.50%. How would that reduction affect the pension plan's net position? 3. Suppose the city were to sell common stock for $1,500,000 that it had acquired for $1,000,000. How would such a sale affect the pension liability as reported on the balance sheet of North Orange? 4. MAA The June 30, 2018, balance sheet of the person liabilities of $100,000 (and hence a net position of $2,205,657). How could the plan ities of only $100,000 when the preceding schedule indicates that the present value of the employees and retirees was over $3 million? P. 10-3 employee A plan ner position is directly tied to the employer's nel pension liability The CAFR of North Orange included the statement of fiduciary net position for its emplere plan presented here: North Orange Employee Pension Plan Statement of Piduciary Net Position June 3, 2018 (Dollar amounts in thousands) $ 140,279 13,285 8.100 21,385 Assets Cash and cash equivalents Receivables: Contributions Investment income Total receivables Investments: Fixed income securities Domestic equity securities International equities Real estate Total investments Total assets Liabilities Investment fees payable Due to broker for investments purchase Benefits payable to retirees Total liabilities Net position restricted for pensions 1,111,088 2,345,543 870,240 511.112 4,837 983 4.999.647 2,890 230.555 59.231 292,676 $4,706971 1. 2. A note to the statement indicated that the plan net position was 75 percent of the North Orange the employer) total pension liability. From this limited amount of information, can you tell how much North Orange would report as its net pension liability? In light of your response to question #1, how do you explain that benefits payable to retirees are only $59.231? Suppose the city reduced its discount rate from 7.75% to 7.50%. How would that reduction affect the pension plan's net position? 3. Suppose the city were to sell common stock for $1,500,000 that it had acquired for $1,000,000. How would such a sale affect the pension liability as reported on the balance sheet of North Orange