An Electronics Retailer Purchases $20,000 of Computers for Resale

question 8

Multiple Choice

An electronics retailer purchases $20,000 of computers for resale.The retailer spends $500 in transportation cost,$2,000 in labour and parts to upgrade the computers,and $300 to advertise them.At this point,what amount should appear in the Inventory account for these computers?

• A)$20,000
• B)$20,500
• C)$22,500
• D)$22,800

---

Definitions:

Perfection

In legal terms, the act of completing all required steps to secure a legal right or interest, making it enforceable against third parties.

Legal Process

The procedure of pursuing formal legal action through courts, including all judicial steps from initiation to resolution.

Secured Obligation

A debt or other type of financial obligation that is backed by collateral to reduce the risk of non-payment.

Secured Party

A lender or creditor in a secured transaction who has a legal interest in the collateral offered by the borrower.