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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

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?

$16,800

$25,000

$12,000

$1,900

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