Lee Company has a defined benefit pension plan. During 2006, for the first time, the company experienced a difference between its expected and actual projected benefit obligation. At the beginning of 2007 the company’s actuary accumulated the following information:

Unrecognized net loss (1/1/2007) .........$ 44,000

Actual projected benefit obligation (1/1/2007) .....228,000

Fair value of plan assets (1/1/2007) ..........260,000

On December 31, 2007, the company is in the process of computing the net gain or loss to include in its pension expense for 2007. The company has determined that the average remaining service life of its employees is nine years. There was no difference between the company’s expected and actual return on plan assets in 2007.

Required

Compute the amount of the net gain or loss to include in the pension expense for 2007. Indicate whether it is an addition to or a subtraction from pension expense.