While playing dominoes with a friend from college, he had the following to say about the effects of a change in actuarial estimates that resulted in an actuarial loss of $500,000 at the end of 2020. 1. The pension expense for 2020 will increase by $500,000. 2. Unless the company contributes $500,000 to plan assets, it is very likely that the plan will be underfunded at the end of the accounting period. 3. The PBO will increase by the same amount as the actuarial loss. Which of the three statements is correct?