ASW Furnishings (ASW), a Los Angeles furniture company, has agreed to purchase 5000 chairs from Big House, a furniture manufacturer in Poland. ASW supplies Big House with the following inputs to use in the production of the chairs, free of charge: • Design specifications created by a Chicago-based furniture designer, purchased for a flat fee of $3200.00. • 2500 yards of cotton upholstery fabric, which Big House procured for $2.00 per yard in Poland, then shipped to ASW’s screen printer in South Africa. ASW paid their South African screen printer to add a design to the fabric for $1.00 per yard, before returning the fabric to Big House’s factory in Poland. Big House imports the chairs to the United States in five shipments of 1000 chairs each. ASW agrees to pay Big House $375,000.00 for the entire order of 5000 chairs, not including the value of the assists. If Big House chooses for the total assist value to be apportioned over the entire anticipated production of 5000 chairs, what is the dutiable value of one shipment of 1000 chairs? (2025 October No.73 – Valuation, Appraisement and Duty Assessment)
A) $75,500.00
B) $76,000.00
C) $76,140.00
D) $77,140.00
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The Answer is: All examinees granted credit
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