Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $154,000 due on December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,077,268. 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 at December 31, 2022?

A. $849,362

B. $852,362

C. $858,872

D. $923,268