Cahal-Michael Company has a postretirement health care benefit plan. On January 1, 2016, the following plan-related data were available:
|($ in 000s)|
|Accumulated postretirement benefit obligation||3,000|
|Fair value of plan assets||400|
|Average remaining service period to retirement||12 years (same in previous 10 yrs.)|
The rate of return on plan assets during 2016 was 10%, although it was expected to be 9%. The actuary revised assumptions regarding the APBO at the end of the year, resulting in a $41,000 increase in the estimate of that obligation.
Calculate any amortization of the net loss that should be included as a component of postretirement benefit expense for 2016.
Assume the postretirement benefit expense for 2016, not including the amortization of the net loss component, is $214,000. What is the expense for the year?
Determine the net loss or gain as of December 31, 2016.