April 2026 — Question 78
Luxury Resins, a Japanese producer of plastic materials, sold resin to Phone Cases Plus, an unrelated U.S. manufacturer, for $20,000. Later, Phone Cases Plus decides to pay a $2,000 royalty to Disney for the right to manufacture and sell Disney-branded phone cases. It makes these phone cases out of the resin purchased from Luxury Resins. What is the transaction value of the transaction between Luxury Resins and Phone Cases Plus?
- A$18,000.00
- B$20,000.00✓ CBP's answer
- C$22,000.00
- D$2,000.00
CBP's cited authority
§ 19 CFR 152.103(f)
Answer and citations as published in CBP's official answer key for the April 2026 examination.
Reading answers is easy. The exam is 80 of these in 4.5 hours.
Pass rates run 12–30%. Find out in 15 minutes whether you'd clear the 75% line today — free, no signup.