Net Gain or Loss – For several years, Kent Company has had a defined benefit contribution plan for its employees. During those years the company experienced differences between its expected and actual projected benefit obligation. These differences resulted in a cumulative net gain or loss at the beginning of each subsequent year. The following schedule summarizes the amounts related to the preceding information for the years 2007 through 2009:

a. At beginning of year

The company’s actuary and funding agency have also provided the following information about the company’s actual projected benefit obligation and fair value of plan assets at the beginning of each year:

The company amortizes any excess unrecognized gain or loss by the straight-line method over the average remaining service life of its active participating employees. Because of a consistent pattern of employee hirings and retirements, this average service life has remained at 20 years for 2007 through 2009.

Required

Prepare a schedule to compute the amount of the net gain or loss to include in the Kent Company’s pension expense for 2007 through 2009. Indicate whether the gain or loss is added to or subtracted from the pension expense.