Free on Board: Free on Board in short known as FOB, defines whether a buyer or a seller will be responsible for the ownership of the goods based on the geographical location of the goods and the contract entered there in. There are two types of FOB: FOB Shipping FOB Destination. FOB Shipping: Under this contract when the goods are placed at the port for the shipment, the ownership of the goods transfers to the buyer. And now the buyer will incur the expenses (freight expense or the transportation expense) or even the loss if anything happens to the goods, from the point of goods placed for delivery. The cost of the inventory.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 2E

To determine

Free on Board:

Free on Board in short known as FOB, defines whether a buyer or a seller will be responsible for the ownership of the goods based on the geographical location of the goods and the contract entered there in.

There are two types of FOB:

FOB Shipping

FOB Destination.

FOB Shipping:

Under this contract when the goods are placed at the port for the shipment, the ownership of the goods transfers to the buyer. And now the buyer will incur the expenses (freight expense or the transportation expense) or even the loss if anything happens to the goods, from the point of goods placed for delivery.

The cost of the inventory.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $140,000. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. What is Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $100,750 and the appraised value of the land was $115,000? Bob's Basis Warehouse Land

On 17-Feb of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,302,500; $295,000 was allocated to the basis of the land and the remaining $1,007,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. e. What would be the depreciation for 2024, 2025, and 2026 if the property were nonresidential property purchased and placed in service 17-Feb, 2007 (assume the same original basis)? Depreciation Year Expense 2024 2025 2026

What percentage of RBC’s total assets is held in investments (at October 31, 2020 and 2019)? refer to the 2020 financial statements and accompanying notes of Royal Bank of Canada (RBC). Note that RBC also holds a significant loan portfolio. What is the business reason for holding loans versus securities? Comment on how the investments are classified and presented on the balance sheet. What percentage of total interest income comes from securities (2020 and 2019)? Are there any other lines on the income statement or in OCI) relating to the securities? What percentage of net income (include any relevant OCI items) relates to securities (2020 versus 2019)? Calculate an approximate return on the investments in securities.