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

Plan Assets	$800,000
Net Pension Liability	100,000
Accumulated OCI (PSC)	200,000

During 2010, the following additional data is available:

Service Cost for 2010	$75,000
Interest rate	15%
Actual return on plan assets in 2010	70,000
Amortization of prior service cost	8,000
Expected return on plan assets	80,000
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions	60,000
Contributions in 2010	85,000
Benefits paid to retirees in 2010	55,000

Required:

Compute pension expense for the year 2010 . (20 points)

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

Year Plan Assets Pension Asset (Liability)

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

2011 2,300,000 100,000

In 2010 there is also a $250,000 opening balance in Accumulated OCI for unrecognized gains. The average remaining service life per employee in 2010 is 12 years, and in 2011 it is 10 years. The net gain or loss that occurred during each year is as follows:

Year Gain (Loss)

2010 $350,000

2011 (400,000)

Required:

Compute the net gain/loss that is amortized in each of the 2 years above. (15 points)