When RL Mining began their operation ten years ago they estimated the asset retirement costs for dismantling the mine and restoring the area would cost $3,200,000. This amount was capitalized to the asset account. The costs were measured again this year and have increased by $700,000 as a result of new environmental regulations. How should this amount be recorded in the financial statements? Select answer from the options below as a debit to the capital asset account and a credit to the retirement liability account it should be reported with a note to the financial statements the accumulated depletion should be decreased by the depreciation rate x $700,000 x 10 years the accumulated depletion should be increased by $700,000