Kristal’s Collectibles, Inc. of Los Angeles, CA is an importer of crystal glassware. The company enters into a contract with a new glassware manufacturer located in Ireland to have some specialty items produced. The Irish company is more than willing to comply, but Kristal’s Collectibles will have to provide the designs and the molds. Since one of Kristal’s local employees is an artist, she is tasked with creating the designs. The cost of her labor is $500. Mostly Molds, a company in Germany, is hired to make the molds, which they send directly to Ireland. Mostly Molds charges Kristal’s Collectibles $5,000 for the molds. This amount includes a transportation expense of $300. The molds are expected to have a lifespan of 10,000 items. However, Kristal’s Collectibles only wants to order 1000 items. All of these will be purchased in the first shipment and the molds will be destroyed. Kristal’s Collectibles agrees to pay the manufacturer $15,000 for the specialty items. However, two days later, Kristal’s Collectibles requests special packing from the manufacturer for these items. The cost of the special packing is $200. When the shipment is entered, which ONE of the following is the correct appraised value of the merchandise?
A) 15000
B) 15500
C) 20200
D) 20500
E) 21000
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The Answer is: C
Citation: 19 CFR 152.103
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