Francisco leased equipment from Julio on December $31,2024.$ The lease is a $10-$year lease with annual payments of $$159,000$ due on December $31$ of each year beginning December $31,2024.$ The present value of the lease payments is $$1,112,244.$ Francisco's incremental borrowing rate is $11\%$ for this type of lease. The implicit rate of $9\%$ is known by the lessee. What should be the balance in Francisco lease liability on December $31,2025?$

Multiple Choice

$$953,244$

$$880,036$

$$886,546$

$$878,036$