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

a. What effect does the discount rate of 4.10% have on the company's pension liability?
b. How does the change in the discount rate from 4.40% in 2015 to 4.10% in 2016 have on the company's pension liability?
c. What effect does the expected long-term return on plan assets of 7.75% have on the company's pension liability? On the pension assets?

Question

International Paper Company's 2016 annual report disclosed the following pension information for its U.S. plans:
  
a. What effect does the discount rate of 4.10% have on the company's pension liability?
b. How does the change in the discount rate from 4.40% in 2015 to 4.10% in 2016 have on the company's pension liability?
c. What effect does the expected long-term return on plan assets of 7.75% have on the company's pension liability? On the pension assets?

Quizplus · Accepted Answer

The Answer of International Paper Company's 2016 annual report disclosed the following pension information for its U.S. plans:
  
a. What effect does the discount rate of 4.10% have on the company's pension liability?
b. How does the change in the discount rate from 4.40% in 2015 to 4.10% in 2016 have on the company's pension liability?
c. What effect does the expected long-term return on plan assets of 7.75% have on the company's pension liability? On the pension assets?

International Paper Company's 2016 Annual Report Disclosed the Following Pension