On January 2, 2006, Loch Co. established a noncontributory defined benefit plan covering all employees and contributed $1,000,000 to the plan. At December 31, 2006, Loch determined that the 2006 service and interest costs on the plan were $620,000. The expected and the actual rate of return on plan assets for 2006 was 10%. There are no other components of Loch’s pension expense. What amount should Loch report in its December 31, 2006 balance sheet as prepaid pension cost?