1) Watt Inc sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances ralate to this plan.

Plan Assets 4,316,000

Projected benefit olbigation 4,300,000

Prior Service Cost (OCI) 840,000

Accumulated OCI- Loss 656,000

As a result of the operations of the plan during 2017, the following additional data are provided by the actuary.

Service cost for 2017 523,000

Settlement & Expected return rate 10%

Actual return on plan assets 510,000

Average service life of all covered employees in years 12

PBO on Dec 31,2017, based on actuarial predictions 4,400,000

Contributions in 2017 652,000

Benefits paid retirees in 2017 705,000

a) Using the data above, compute pension expense for the year 2017 by preparing a pension worksheet

b) Compute the amount of net gains or losses to be amortized for 2017 and 2018