The actuary of the Hudson Company has provided the following information concerning the company’s defined benefit pension plan at the end of 2007:

Fair value of plan assets (1/1/2007) .........$350,000

Actual projected benefit obligation (1/1/2007) ......360,000

Expected projected benefit obligation (1/1/2007) .....424,000

Average remaining service life of employees 10 years

The difference between the actual and expected projected benefit obligation first occurred in 2006.

Required

1. Compute the amount of the unrecognized gain or loss for the Hudson Company’s pension plan at the beginning of 2007.

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