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 720,000 tons are sold, what amount should be recorded for Gravel Inventory and Accumulated Depletion, respectively?
A) $140,000 and 360,000
B) $360,000 and $140,000
C) $360,000 and 360,000
D) $140,000 and $500,000

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The Answer of 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 720,000 tons are sold, what amount should be recorded for Gravel Inventory and Accumulated Depletion, respectively?
A) $140,000 and 360,000
B) $360,000 and $140,000
C) $360,000 and 360,000
D) $140,000 and $500,000

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