Vishnu88 wrote: I am really not sure why answer A wouldn't be sufficient by itself.

Because the question is asking for the acquisition cost for all the cars left at the end of the year. With statement 1), we know the acquisition cost of all the cars that were already on the lots plus those purchased (which is probably what you were thinking you needed to answer), but we have no idea how many cars were sold and their acquisition costs. For example, Tony's could have sold all 250 cars, so the acquisition cost of cars left on the lot is $0, or he could have sold none of them, in which case the acquisition cost of cars left on the lot is $2,625,000.

Even when you combine with statement A, you don't know. For all we know, Tony's could have sold one car for $1,050,000 and (likely) taken a big profit on that car, or he could have sold all the cars for that much and taken a loss.

Initially 200 cars - price = 10k each
During the year 50 cars acquired
Total cost of cars at end of year = ?
1) Cars acquired during year=50, and price of each car = 12.5k
but we can't find total cost at the end because we don't know how many cars were sold during the year. So insufficient.
2) Total revenue = 1050k
But we don't know at what price cars were sold and thus we can't find no. of cars remaining at the end of year. Insufficient.
Both 1& 2 - Again information about no. of cars sold not given, thus insufficient
IMO E

Tricked by the wordings at the end.

Thanks for the responses.