Horshack Mining Company Purchases a Gravel Pit for $5,000,000

question 214

Multiple Choice

Horshack Mining Company purchases a gravel pit for $5,000,000.It estimates that 10,000,000 tons of gravel can be extracted over the pit's useful life.If 2,000,000 tons are extracted during the first year but only 1,440,000 tons are sold,what amount should be recorded for Gravel Inventory and Depletion Expense,respectively?

• A)$280,000 and 720,000
• B)$720,000 and $280,000
• C)$720,000 and 720,000
• D)$280,000 and $1,000,000

---

Definitions:

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are unconsciously transformed into socially acceptable actions or behavior.

Object Relations Theory

A psychoanalytic theory suggesting that relationships and interactions with significant others, especially parents, during infancy shape an individual's personality and relationships in adulthood.

Melanie Klein

A pioneering figure in psychoanalysis, particularly known for her work in child analysis and her theories on the importance of fantasy, play therapy, and the early stages of child development.