On 1-1-2016, Gadasky Corporation initiated a funded, noncontributory, defined benefit pension plan and gave employees credit for prior employment. The company complies with generally accepted accounting principles (GAAP). The actuary estimated the prior service cost to be $400,000 on 1-1-2016. Gadasky contributed $300,000 to the pension fund on 1-1-2016, i.e., funded $300,000. The average remaining service period of current employees is approximately 10 years at all times. Service cost was $37,000 for 2016. The actual return on pension plan assets was 1% for 2016. The settlement rate (i.e., the actuarys discount rate) is 5% per year. The expected return on pension plan assets is 6% per year. The market related value of pension plan assets is the same as the fair value of pension plan assets. Gadasky contributed $10,000 to the pension fund on 12-31-2016, i.e., funded $10,000.

Based on the corridor approach under generally accepted accounting principles (GAAP), Gadasky amortizes the minimum amount of gains and losses required under generally accepted accounting principles (GAAP). The accounting for pensions under generally accepted accounting principles (GAAP) allows a lot of deferral devices and a lot of smoothing devices and Gadasky utilizes those devices. As do many companies, Gadasky tries to minimize its reported liabilities on the balance sheet while complying with generally accepted accounting principles (GAAP).

Required

What is pension expense for 2016 for Gadasky ?