Last year, mountain top, inc., purchased a coal mine at a cost of $900,000. the salvage value has been estimated at $100,000. the coal mine has an estimated 200,000 tons of available coal. a total of 70,000 tons were mined and sold during the current year. complete the necessary journal entry to record depletion expense for the current year by selecting the account names and dollar amounts from the drop-down menus.

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.