Mandarin Inc.has defined contribution plan for its employees. During 2015,the expected return on plan assets was $34,000 whereas the actual return on plan assets was $37,000. While computing pension expense for the year 2015,Mandarin should
Deduct actual return of $37,000from pension expense
Add expected return of $34,000 to pension expense
Deduct actual return of $37,000from pension expense and deducted $3,000 unexpected loss from pension expense
Deduct actual return of $37,000 from pension expense and add $3,000 unexpected gain.