A company buys an oil facility for $1,000,000 on January 1, 2015. The life of the facility is 10 years and the expected cost to dismantle (remove) the facility at the end of 10 years is $200,000 (present value at 10% is $77,110). 10% is an appropriate interest rate for this company.

(round up answers to nearest 1$)

What expense should be recorded for 2015 as a result of these events?