International Paper Companys 2016 annual report disclosed the following pension information for its U.S. plans:

	2016	2015	2014
Discount rate	4.10%	4.40%	4.10%
Expected long-term return on plan assets	7.75%	7.75%	7.75%
Rate of compensation increase	3.75%	3.75%	3.75%

1. What effect does the discount rate of 4.10% have on the companys pension liability?
2. How does the change in the discount rate from 4.40% in 2015 to 4.10% in 2016 have on the companys pension liability?
3. What effect does the expected long-term return on plan assets of 7.75% have on the companys pension liability? On the pension assets?