An Electronics Retailer Purchases $20,000 of Computers for Resale

Multiple Choice

An electronics retailer purchases $20,000 of computers for resale.The retailer spends $500 in transportation cost,$2,000 in labour and parts to upgrade the computers,and $300 to advertise them.At this point,what amount should appear in the Inventory account for these computers?

A) $20,000
B) $20,500
C) $22,500
D) $22,800