As of January 1, the company had the following pension-related balances: Projected benefit obligation (PBO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Projected benefit obligation (PBO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           $(15,000)

Fair value of pension fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,000

Deferred net pension (gain)/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           $(1,100)

Discount rate for the PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     8%

During the year, service cost was $1,500. The actual return on the pension fund was $700. Compute pension expense for the year and the ending balance in deferred net pension (gain)/loss assuming that (1) the expected return on the pension fund is 10% and (2) the expected return on the pension fund is 12%.