Novak Corporation acquires a coal mine at a cost of $$485,000.$ Intangible development costs total $$125,000.$ After extraction has occurred, Novak must restore the property $($estimated fair value of the obligation is $$100,000),$ after which it can be sold for $$200,000.$ Novak estimates that $5,000$ tons of coal can be extracted.

If $875$ tons are extracted the first year, prepare the journal entry to record depletion. $($If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. Credit account titles are outomatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit