Watt Inc sponsors a defined benefit pension plan for its employees. On Jan 1 2017, the following balances relate to this plan.

Plan assets	4,316,000
Projected benefit obligation	4,300,000
Prior service cost ( OCI )	840,000
Accumulated OCI - Loss	656,000

As a result of the operation of the plan during 2017, the following additional data are provided by the actuary.

Service cost for 2017	523,000
Settlement and expected return rate	10%
Actual return on plan assets	510,000
Average service life of all covered employees in years	12
PBO on Dec 31 2017, based on actuarial predictions	4,400,000
Contributions in 2017	652,000
Benefits paid retirees in 2017	705,000

Instructions:

1) Using the data above, compute pension expense for the year 2017 by preparing a pension worksheet.

2) Prepare the journal entry for pension expense for 2017.

3) Compute the amount of net gains or losses to be amortized for 2017 and 2018.