Wildhorse Co$.$ manufactures equipment that is sold or leased. On December $31,2025,$ Wildhorse leased equipment to Dalton for a five$-$year period ending December $31,2030,$ at which date ownership of the leased asset will be transferred to Dalton. Equal payments under the lease are $$1085000($including $$97000$ executory costs$)$ and are due on December $31$ of each year. The first payment was made on December $31,2025.$ Collectibility of the remaining lease payments is probable. The lease receivable before the first payment is $$3700000,$ and cost is $$2850000.$ For the year ended December $31,2025,$ what amount of income should Wildhorse realize from the lease transaction?

$$1085000$

$$1725000$

$$1240000$

$$850000$