Laminate Industries in Seattle, Washington, sells laminated plywood sheets to the building and home improvement industries. It purchases its large plywood sheets from its parent company, Canadian Laminates, located in Alberta, Canada. Canadian Laminates imports the sheets from its British manufacturer and then sends them to the U.S. firm. The Canadian firm stopped manufacturing in Canada because the general expense cost skyrocketed to15%, while the profits were only 1% for these plywood laminate sheets. This was not the result of problems at Canadian Laminates, but reflective of the entire Canadian industry that produces these laminated products for export sales to the United States. In Britain plywood laminate producers are able to hold general expenses to 3%, while recouping a 7% profit. The correct basis of appraisement is Computed Value. The information available is as follows: Materials 10000 Labor 10000 Fabrication $ 1,000.00 General Expenses and Profit What is the correct computed value?
A) 22543
B) 22050
C) 23100
D) 25578
E) 24360
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The Answer is: E
Citation: 19CFR152.106
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