1. Corridor approach (amortization of net gains and losses.)

Gibbs Company has 200 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 2,000. The actuary for the company's pension plan calculated the following net gains and losses:

For the Year Ended
December 31	(Gain) Or Loss
2014	$640,000
2015	(554,000)
2016	990,000

Prior to 2014, there was no unrecognized net gain or loss.

Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows:

		As of January 1
		2014	2015	2016
	Projected benefit obligation	$2,100,000	$2,340,000	$2,940,000
	Fair value of plan assets	1,680,000	2,460,000	2,550,000

Instructions

Based on the above information about Gibbs Company, prepare a schedule which reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2014, 2015, and 2016. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees.