On January 2, 20X1, Loch Company established a defined benefit plan covering all employees and contributed $1,000,000 to the plan. At December 31, 20X1, Loch determined that the 20X1 service and interest costs totaled $620,000. The expected and the actual rate of return on plan assets for 20X1 was 10%. Loch’s pension expense has no other components.

Required:

What amount should Loch report in its December 31, 20X1, balance sheet as a pension asset (liability)?