William Corporation sponsors a defined benefit pension plan. The actuary provides the following information about the plan at December 31, 2014.

Defined Benefit Obligation $700,000

Plan Assets (fair value) $685,000

Service cost $120,000

Contributions $272,000

Benefits $150,000

On January 1, 2014, the fair value of the plan assets was $273,000 and the defined benefit obligation was $320,000. The plan is discounted at an interest rate of 10%.

Instructions

a) Compute the actual return on plan assets in 2014

b) Compute asset gain or loss and indicate how the gain or loss would be reported.