Question 19

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