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

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Definitions:

Buyer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.

Seller Surplus

The difference between the actual selling price of a good and the seller's minimum acceptable price.

Market Distortions

Economic situations caused by inefficiencies or interventions that lead to prices not reflecting true supply and demand.

Wealth Creating

Wealth creating refers to the process or actions that contribute to generating financial profit or increasing economic value for individuals, businesses, or economies.