Chapter 10 Pesions and other Fiduciary Activites question P. 10-3

1. A note to the statement indicated that the plan net position was 75% of the North Orange (employer) total pension liablitiy. From this limited amount of information, can you tell how much North Orange would report as its net pension?

2. In light of your response to question #1 how do you explain the benefits payable to retirees are only $59,231? Answer this amount is what was paid to the retirees during the finanacial peroid. Am I right?

3. Suppose the city reduces its discount rate from 7.75% to 7.50%. How would that reductions affect the pension net position?

4. Suppose the city were to sell common stock for $1,500,000 that it had accquired for 1,000,000. How would such a sale affect the pension liability as reported on the balance sheet of North Orange