4) During the current year, a company grants a retroactive retirement benefit increase for past service. In the calculation of the current period's pension expense, how does the granting of the benefit affect net income and other comprehensive income? | a. It decreases only other comprehensive income. | | | | | c. It decreases only net income. | | | | 5) At the beginning of the current year, Ross Company has a fair value of its plan assets of $100,000. Ross expects an 8% return on investing the plan assets. The actual return was 7%. Which of the following statements is true due to the expectations and actual results described? | a. Pension expense is reduced by $7,000. | | | | b. Pension expense is increased by $8,000. | | | | c. Pension expense is reduced by $8,000. | | | | d. Pension expense is increased by $1,000. | | | |