OReilly Corporation sponsors a defined benefit pension plan for its employees. The long run expected rate of return on plan assets is 10% and the settlement rate is assumed to be 9%. The enacted tax rate is 40%. OReilly uses the straight-line method to amortize PSC and the corridor method to amortize gains and losses. No plan amendments are made during 2007.

The following balances relate to this plan as of 12/31/06:

Plan assets (actual fair value) $520,000

Projected benefit obligation 757,000

Unrecognized past service cost 81,000

Unrecognized pension losses 132,000

Average remaining service life of active employees 10

Average remaining service life of employees active when plan amended 8

The following additional information about the operation of the plan during 2007 is provided by the plan actuary or the pension plan fund manager:

Service cost $98,000

Actual return on plan assets 42,000

Funding (paid by OReilly to pension fund on 12/31/07) 128,000

Benefits paid to retirees (from pension fund on 12/31/07) 85,000

Actual projected benefit obligation (PBO) on 12/31/07 850,000

Required:

1. Determine the amount of pension gain or loss to be amortized in 2007.

2. Compute OReillys PBO loss or gain in 2007.

3. Compute OReillys asset loss or gain in 2007.

4. What is OReillys unrecognized gain/loss balance at the end of 2007?