Water Inc. has the following balances at 1/1/10 that relate to its defined-benefit pension plan:

Plan Assets

$800,000

Net Pension Asset

100,000

Accumulated OCI (PSC)

120,000

During 2010, the following additional data is available:

Service Cost for 2010

$75,000

Settlement rate

20%

Actual return on plan assets in 2010

65,000

Amortization of prior service cost

10,000

Expected return on plan assets

60,000

Unexpected loss from change in projected benefitobligation, due to change in actuarial predictions

65,000

Contributions in 2010

90,000

Benefits paid to retirees in 2010

75,000

Required:Compute pension expense for the year 2010.

Question 2

George Incorporated has the following balances as of the beginning of each year:

YearPBOPension Asset (Liability)

2010$1,700,000$(200,000)

20112,300,000100,000

In 2010 there is also a $200,000 opening balance in Accumulated OCI for unrecognized gains. The average remaining service life per employee in 2010 is 10 years, and in 2011 it is 12 years. The net gain or loss that occurred during each year is as follows:

YearGain (Loss)

2010$(350,000)

2011400,000

Required:

Compute the net gain/loss that is amortized in each of the 2 years above.