Harrison Forklift's pension expense includes a service cost of $27 million. Harrison began the year with a pension liability of $47 million (underfunded pension plan).

1. Interest cost, $8; expected return on assets, $21; amortization of net loss, $6.
2. Interest cost, $23; expected return on assets, $17; amortization of net gain, $6.
3. Interest cost, $23; expected return on assets, $17; amortization of net loss, $6; amortization of prior service cost, $7 million.