MR operates a defined benefit pension plan for its employees. At 1 January 20X3, the fair value of the pension plan assets was $3,700,000 and the present value of the pension plan liabilities was $3,900,000. The actuary estimated that the service cost for the year to 31 December 20X3 was $1,100,000. The pension plan paid $340,000 to retired members and MR paid $760,000 in contributions to the pension plan in the year to 31 December 20X3. The actuary estimated that the relevant discount rate for the year to 31 December 20X3 was 5 per cent. At 31 December 20X3, the fair value of the pension plan assets was $4,400,000 and the present value of the pension plan liabilities was $4,700,000.

Required: 

In accordance with IAS 19 Employee Benefits:

(i) Calculate the expense that will be charged to MR’s profit for the year ended 31 December 20X3 in respect of this pension plan.

(ii) Calculate the net actuarial gain or loss on pension plan assets and liabilities that will be included in MR’s other comprehensive income for the year ended 31 December 20X3. Your answer should clearly state whether it is a net gain or a net loss.