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:

Multibit

Pertaining to a data format or system that utilizes more than one bit to represent information, allowing for a wider range of values or states.

Analog Devices

Companies or components focused on the design and manufacture of semi-conductor products that process real-world physical phenomena into analog signals, such as temperature or pressure.

Data Transfer

The process of moving information from one location to another, in other words, from register to register, from device to device, and so forth.

Compare

An instruction that compares the contents of two designated data memory locations of a programmable logic controller for equality or inequality.