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Ned received $300,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Ned realize on the forfeited deposits?   A. $0. B. $7,500. C. $9,000. D. $45,0

Ned received $300,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Ned realize on the forfeited deposits?   A. $0. B. $7,500. C. $9,000. D. $45,0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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 Ned received $300,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Ned realize on the forfeited deposits?
 
A. $0.
B. $7,500.
C. $9,000.
D. $45,000
 
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