The TAN Company has a defined benefit pension plan for its employees. The plan has been in existence for several years. During 2006, for the first time, the company experienced a difference between its expected and actual projected benefit obligation. This resulted in a cumulative unrecognized loss of $29,000 at the beginning of 2007, which did not change during 2007. The company amortizes any excess unrecognized loss by the straight-line method over the average remaining service life of its active participating employees. It has developed the following schedule concerning these 40 employees:

The company makes its contribution to the pension plan at the end of each year. However, it has not always funded the entire pension expense in a given year. As a result, it had an accrued pension cost liability of $36,000 on December 31, 2006. Furthermore, the company's accumulated benefit obligation exceeded the fair value of the plan assets at the end of 2006, so that the company also had an additional pension liability (and excess of additional pension liability over unrecognized prior service cost) of $2,300 on December 31, 2006. In addition to the preceding information, the following set of facts for 2007 and 2008 has been assembled, based on information provided by the company's actuary and funding agency, and obtained from its accounting records:

Required
1. Calculate the average remaining service life of the TAN Company's employees. Compute to one decimal place.
2. Prepare a schedule to compute the net gain or loss component of pension expense for 2007 and 2008. For simplicity, assume the average remaining life calculated in Requirement 1 is applicable to both years.
3. Prepare a schedule to compute the pension expense for 2007 and 2008.
4. Prepare a schedule to determine the adjustment (if any) to additional pension liability required at the end of 2007 and 2008.
5. Prepare all the December 31, 2007 and December 31, 2008 journal entries related to the pensionplan.

2007 2008 Plan assets, fair value (12/31) Cumulative unrecognized net loss (1/1) Expected (and actual) return on plan assets S859,550 29,000 62,050 Company contribution to pension plan (12/3) 175,000 177,000 686,000 10% 903,000 175,000 620,500 $620,500 29,000 40,500 Projected benefit obligation (1/1) Discount rate 470,000 10% Accumulated benefit obligation (12/31) Service cost 660,000 169,000 405,000 Plan assets, fair value (1/1)