Exquisite Décor, LLC, a seller of decorative house wares based in New York, imports and sells tapestries from a designer in Turkey. Each shipment of tapestries is sold for the price of $10,000. The tapestries are produced in Ankara and then transported by train to Istanbul for delivery to the |US by shin at a total cost of $800 per shinment

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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Exquisite Décor, LLC, a seller of decorative house
wares based in New York, imports and sells
tapestries from a designer in Turkey. Each shipment
of tapestries is sold for the price of $10,000. The
tapestries are produced in Ankara and then
transported by train to Istanbul for delivery to the
U.S. by ship at a total cost of $800 per shipment.
Once delivered to the Port of New York, the
tapestries are delivered by truck to Exquisite's
warehouse in Buffalo at a cost of $100 per
shipment. The invoice also lists a copyright licensing
fee of $500, insurance of $200, packing costs of
$500, and a commission of $1,500 paid to
Exquisite's buying agent. Exquisite is expecting
delivery of one shipment. The invoice separately lists
each of the above charges. What is the dutiable
value of this shipment of tapestries to be reported at
the time of entry?
A. $13,700.
B. $13,600.
C. $11,000.
D. $12,500
What is included in the calculation?
Transcribed Image Text:Exquisite Décor, LLC, a seller of decorative house wares based in New York, imports and sells tapestries from a designer in Turkey. Each shipment of tapestries is sold for the price of $10,000. The tapestries are produced in Ankara and then transported by train to Istanbul for delivery to the U.S. by ship at a total cost of $800 per shipment. Once delivered to the Port of New York, the tapestries are delivered by truck to Exquisite's warehouse in Buffalo at a cost of $100 per shipment. The invoice also lists a copyright licensing fee of $500, insurance of $200, packing costs of $500, and a commission of $1,500 paid to Exquisite's buying agent. Exquisite is expecting delivery of one shipment. The invoice separately lists each of the above charges. What is the dutiable value of this shipment of tapestries to be reported at the time of entry? A. $13,700. B. $13,600. C. $11,000. D. $12,500 What is included in the calculation?
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