James Sporting Goods is offering the following in$-$store rewards program as follows. The program runs from January $1,2025$ through

December $31,2025.$ Rewards are provided on January $1,2026.$

Sales revenue for $2025$ were $$13$ million, of which $30\%$ fell into Category A$,20\%$ in Category B$,40\%$ in Category C$,$ and $10\%$ in

Category D$.$ Rebates provided to customers were $$100,000.$ James expects that rewards redeemed will be $95\%.$

What amount should James report as a rebate liability at December $31,2025?$

Rebate liability $