1. 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?
2. In light of your response to question #1, how do you explain that benefits payable to retirees are only $59,231?
3. Suppose the city reduced its discount rate from 7.75 to 7.50%. How would that reduction affect the pension plan's net position?
4. 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?

P. 10-3 A plan net position is directly tied to the employer's net pension fiability. The CAFR of North Orange included the statement of fiduciary net position for its employee pension plan presented here: North Orange Employee Pension Plan Statement of Fiduciary Net Position June 3, 2021 (Dollar amounts in thousands) Assets Cash and cash equivalents $140.279 Receivables: Contributions 13,285 Investment income 8.100 Total receivables 21.383 Investments: 1,111,088 2,345,543 870,240 511,112 4.837.983 4.999,647 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 2,890 230,555 59.231 292.676 54,706,971 1. 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? 2. In light of your response to question #1, how do you explain that benefits payable to retirees are only $59.231? 3. Suppose the city reduced its discount rate from 7.75 to 7.50%. How would that reduction affect the pension plan's net position? 4. 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? P. 10-3 A plan net position is directly tied to the employer's net pension fiability. The CAFR of North Orange included the statement of fiduciary net position for its employee pension plan presented here: North Orange Employee Pension Plan Statement of Fiduciary Net Position June 3, 2021 (Dollar amounts in thousands) Assets Cash and cash equivalents $140.279 Receivables: Contributions 13,285 Investment income 8.100 Total receivables 21.383 Investments: 1,111,088 2,345,543 870,240 511,112 4.837.983 4.999,647 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 2,890 230,555 59.231 292.676 54,706,971 1. 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? 2. In light of your response to question #1, how do you explain that benefits payable to retirees are only $59.231? 3. Suppose the city reduced its discount rate from 7.75 to 7.50%. How would that reduction affect the pension plan's net position? 4. 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