Rasband Photography has a pension plan covering it's 100 employees. Rasband anticipates an 11% return on it's pension fund. The fund trustee furnishes Rasband with the following information relating to the pension fund for 2011:
Jan 1: FVPF................................................................................................................$1,500,000
Market related value of the pension fund(5yr weighted avg)...........................$1,350,000
During yr:Actual return on pension fund..........................................................................$ 110,000
Dec.31 : FVPF.................................................................................................................$1,620,000
Market related value of the pension fund (5yr weighted avg)............................$1,480,000
Compute the differences between the actual and the expected return on the pension fund. How should the difference be treated in determining pension expense for 2011? Rasband bases expected return on the market-related value of the pension fund.