On January 1, Y4, Tank Co. had the following balances:

Accumulated benefit obligation ........................................................................ $4,780,000

Projected benefit obligation (not including any information below) ................ 4,800,000

Fair value of plan assets .................................................................................... 4,800,000

Other data related to the pension plan for Y4:

Service cost ........................................................................................................ 210,000

The pension plan was amended, increasing benefits to retirees

(and PBO at January 1, 2004) by this amount ................................................... 32,000

Contributions to the plan .................................................................................. 306,000

Benefits paid retirees ........................................................................................ 300,000

Actual return on plan assets .............................................................................. 1,000

Settlement rate .................................................................................................. 9%

Expected rate of return ..................................................................................... 12%

Average remaining service life of active employees ......................................... 10 years

Accumulated benefit obligation at 12/31/Y4 .................................................... 5,136,000

Instructions (for credit, please clearly show computations):

1. Calculate pension expense for Y4.

2. Prepare the pension related journal entries for Y4.

3. Determine the value of the plan assets at December 31, Y4.

4. Determine the gain or loss that will be amortized in Y5, if any. If some is amortized in Y5, please indicate if pension expense will be increased or decreased.