Question: While doing some research online concerning a possible investment, you come across an article that mentions in passing that a representative of Goldman Sachs had

While doing some research online concerning a possible investment, you come across an article that mentions in passing that a representative of Goldman Sachs had indicated that a company's pension plan had benefited the company's reported earnings.

1) Can the periodic pension "cost" cause a company's reported earnings to increase? Explain.

2) Companies must report the actuarial assumptions used to make estimates concerning pension plans. Which estimate influences the earnings effect in requirement 1?

3) Can any of the other estimates influence earnings? Explain.

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