Herring Wholesale Company has a defined benefit pension plan. On January 1, 2011, the following pension-related data were available:
The rate of return on plan assets during 2011 was 9%, although it was expected to be 10%. The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $23,000 decrease in the estimate of that obligation.

Required:

1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2011.

2. Assume the net pension expense for 2011, not including the amortization of the net gain component, is $325,000. What is pension expense for the year?

3. Determine the net loss-AOCI or net gain-AOCI as of January 1, 2012.