Reference no: EM131961821

Problem - The San Francisco Sailors has 200 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 2,000. The actuary for the company's pension plan calculated the following net gains and losses:

For the year ended December 31st:     Gain/(Loss)

2014                                                   $640,000

2015                                                   ($554,000)

2016                                                    $990,000

Prior to 2014, there was no unrecognized net gain or loss.

Information about the company's projected benefit obligation and fair value (market-related) of plan assets follows:

As of January 1,                   2014             2015               2016

PBO                                 $2,100,000   $2,340,000      $2,940,000

Fair Value of Plan Assets   $1,680,000    $2,460,000      $2,550,000

Based on the above information about San Francisco Sailors, determine the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2014, 2015, and 2016. The Sailors amortizes net gains or losses using the straight-line method over the average service life of participating employees.