On Jan. 1, 2021, XYZ instituted a defined benefit pension plan. The annual service cost was $600,000 for 2021 and 2022. The interest rate used to determine PBO is 10%. Both the actual and the expected return on plan assets are 8% for both years. XYZ funded the plan by $400,000 on Jan. 1, 2021 and Jan. 1, 2022. What is the net pension liability on Dec. 31, 2022?

A) $361,440

B) $393,440

C) $421,440

D) $481,440

Can someone explain how to get to the answer? thank you