Refer to the information for Villa SpA in BE20.6. Compute the gain or loss on pension plan assets for Villa SpA and indicate the accounting and reporting for the asset gains or losses.
Villa SpA has experienced tough competition, leading it to seek concessions from its employees in the company's pension plan. In exchange for promises to avoid layoffs and wage cuts, the employees agreed to receive lower pension benefits in the future. As a result, Villa amended its pension plan on January 1, 2019, and recorded negative past service cost of €125,000. The average period to vesting for the benefits affected by this plan is 5 years. Current service cost for 2019 is €26,000. Interest expense is €9,000, and interest revenue is €2,500. Actual return on assets in 2019 is €1,500. Compute pension expense for Villa in 2019.