Paulson, Inc

Multiple Choice

Paulson, Inc. has 5 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $825. At the statement date, each computer has a current replacement cost of $350. What value should Paulson, Inc., have for the computers at the end of the year?

A) $1,250.
B) $1,750.
C) $3,000.
D) $4,125.