On January $1,2024,$ Onyeocha Climbing Academy instituted a defined benefit pension plan

for its employees. The annual service cost for each year of $2024$ and $2025$ was $$600,000.$ The

interest rate used to determine the projected benefit obligation is $10\%.$ Both the actual and

the expected return on plan assets are $8\%$ for both years. Onyeocha funded the plan in the

amount of $$400,000$ each January $1,$ beginning on January $1,2024.$

What pension liability should Onyeocha report in its balance sheet for the year ended

December $31,2025?$

A$)$ $$361,440$

B$)$ $$393,440$

C$)$ $$421,440$

D$)$ $$481,440$