AMA Corporation has a defined benefit pension plan.At January 1,2010,the following balances exist:

\begin{array}{ll}\text { Accrued benefit obligation } & \$ 2,580,000 \\\\\text { Planassets (at market value) } & 1,680,000 \\\\\text { Unamortized past service cost from. plan initiation } & 208,000 \\\\\text { Unrecognized net loss from actuarial gains and losses } & 300,000 \\\\\text { Interest rate on obligations } & 3 \%\end{array}

For the year ended December 31,2010,the current service cost as determined by an appropriate actuarial cost method was $280,000.A change in actuarial assumptions created a gain of$16,000 in 2010.The expected return on plan assets was $67,200; however,the actual return is $63,700.The expected period of full eligibility at January 1,2010 (i.e.,the vesting period)is 8 years,while the expected average remaining service life is 28 years.AMA paid $227,700 to the pension trustee in December 2010.The company recognizes only the minimum amount of corridor amortization.
Requirement:
Prepare the journal entry to record pension expense for 2010.

Which Statement Is Correct for the Treatment of Actuarial Gains

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