Learner Company Operates a Petrochemical Plant Located in a Foreign

Multiple Choice

Learner Company operates a petrochemical plant located in a foreign trade zone and imports chemicals that experience substantial evaporation loss during processing for use in production.It imported $200,000 of crude oil for use in chemical production.About 25% of the oil is lost through evaporation during production.Duty is assessed at 8% of cost, and carrying cost is 10% per year. Learner sells the finished product 6 months later.What is the amount of duty paid and carrying costs incurred by Learner?

A) $16,800
B) $25,000
C) $12,000
D) $1,900