Accounting for Pensions Adams Industries is an electrical equipment manufacturer located in the Midwest. Adams employs approximately 500 employees, all of which are covered by the company's defined benefit pension plan. This plan has been in effect for a number of years and historically the company has treated the difference between the plan actual return and the plan expected return as a component of other comprehensive income and amortized the balance as appropriate. In the first quarter of 2020, the company's pension consultants made their estimates of interest costs, service cost and return on plan assets, Because of what they perceived as the detrimental impact of the COVID-19 pandemic on the economy, unemployment rates and the stock market, the consultants estimated a return on plan assets of 2%. However, as you are probably aware, the stock market recovered nicely, and in fact, set new record highs several times before the end of 2020. Adams Industry's plan assets generated an actual return of 18%. The plan assets at the beginning of 2020 were $35 million. Adams' sales and profits for 2020 were extremely poor for the year because many of their customers were affected by the COVID restrictions and they purchased considerably less product from the company. As a result, Adams experienced a significant financial loss in 2020. To partially offset the loss, the company would like to apply the entire 18% return as a reduction of pension expense. They anticipate this to be a "one time only" event and anticipate returning to the practice of treating the difference between expected return and actual return as a component of other comprehensive income in future years. They have asked you for your professional opinion