Presented below is partial information related to Sandra Conley Co. at December 31, 2010.

Defined benefit obligation.................................................................€950,000

Plan assets (at fair value) .....................................................................650,000

Past service cost not yet recognized in postretirement expense.............60,000

Gain and losses .........................................................................................–0–

Instructions

(a) Present the schedule reconciling the funded status with the pension asset/liability reported on the statement of financial position. Assume no asset or liability existed at the beginning of the period for postretirement benefits on Sandra Conley Co.’s statement of financial position.

(b) Assume the same facts as in (a) except that Sandra Conley Co. has an unrecognized loss of €20,000. Present the reconciliation schedule, assuming

(1) Conley uses corridor amortization,

(2) Conley immediately recognizes gains and losses in other comprehensive income.