Castle Home Builders Co$.($CHB$)$ entered into a $12-$year lease agreement on January $2,2023$ for a building where its business is located. The company is required to make annual payments of $$100,000$ starting on January $2,2023.$ The economic life of the building is $20$ years. CHB has the option to purchase the building at the end of the lease term for $$200,000,$ considerably less than the expected fair value at that time. A real estate appraiser determined that the fair value of the building was $$894,000$ on the date the lease was signed. The implicit interest rate in the lease is $8\%$ and CHB has an incremental borrowing rate of $10\%.$