At December 31, 2020, as a result of its defined benefit pension plan, Creste Company had a balance in Accumulated OCI-Pension Loss and an underfunded pension balance. Creste's pension plan and its actuarial assumptions have not changed since it began operations in 2010. Creste has made annual contributions to the plan.

Required 

Write a one-page report addressing the following questions.

a. Identify the components of net pension expense that should be recognized in Creste's 2020 financial statements.

b. What circumstances caused Creste's (1) net pension loss and (2) underfunded pension balance?