Question: On January 2, 2014, Loch Company established a defined benefit plan covering all employees and contributed $1,000,000 to the plan. At December 31, 2014, Loch determined that the 2014 service and interest costs totaled $620,000. The expected and the actual rate of return on plan assets for 2014 was 10%. Loch's pension expense has no other components.
Required: What amount should Loch report in its December 31, 2014, balance sheet as a pension asset (liability)?