Cahal-Michael Company has a postretirement health care benefit plan. On January 1, 2011, the following plan-related data were available:
The rate of return on plan assets during 2011 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 $39,000 increase in the estimate of that obligation.

Required:
1. Calculate any amortization of the net loss that should be included as a component of postretirement benefit expense for 2011.
2. Assume the postretirement benefit expense for 2011, not including the amortization of the net loss component, is $212,000. What is the expense for the year?
3. Determine the net loss or gain as of December 31, 2011.