WonderYears, Inc., a toy importer, purchases a shipment of Squish toys from an unrelated toy manufacturer, the Kyoto Toy Company of Japan. WonderYears, Inc. has exclusive distribution rights in return for an annual payment of $15,000, which was not required as a condition of sale. Kyoto Toy Company would have charged a higher price for the shipment, but because WonderYears, Inc. owed Kyoto Toy Company $5,000, it offset the debt and asked for a $60,000 cash payment. Which ONE of the following is the correct appraised value of the shipment?
A) 60000
B) 15000
C) 80000
D) 65000
E) 45000
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The Answer is: D
Citation: 19 CFR 152.103(a)(1), example 4
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