Kotter Mining Company Purchases a Gravel Pit for $2,500,000

question 54

Multiple Choice

Kotter Mining Company purchases a gravel pit for $2,500,000.It estimates that 5,000,000 tons of gravel can be extracted over the pit's useful life.If 1,000,000 tons are extracted during the first year but only 750,000 tons are sold,what amount should be recorded for Gravel Inventory and Accumulated Depletion,respectively?

• A) $125,000 and 375,000
• B) $375,000 and $125,000
• C) $375,000 and 375,000
• D) $125,000 and $500,000

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Definitions:

Katz

A reference to Daniel Katz, a psychologist known for his work in organizational behavior, particularly regarding motivations and attitudes of employees.

Management Function

The roles and activities undertaken by managers to ensure the organization's objectives are met, typically including planning, organizing, leading, and controlling.

Affirmative Action Program

A policy or a set of measures aimed at increasing the opportunities for historically underrepresented groups in areas such as education, employment, and business.

Emotional Intelligence

The capacity to identify, comprehend, and control one’s own feelings as well as the feelings of other people.