1. (20 min.)

Start with $95,000

Item (a) - (Because the goods were shipped FOB

destination, the title will pass to Kemp

upon arrival. Properly excluded.)

Item (b) - 500 (Goods should be excluded. The customer owns

them.)

Item (c) + 4,000 (Goods belong to Kemp. Title passed when

supplier delivered the goods to the

transportation company.)

Item (d) - (Because the goods were shipped FOB shipping

point, Kemp no longer has title to these

goods. Properly excluded.)

Item (e) + 2,500 (Goods were shipped FOB destination. Kemp

retains title until the customer receives

them.)

Item (f) - 3,000 (These goods are owned by the consignor, not

the consignee, and should not be included in

Kemp's inventory.)

————————

Corrected

inventory $ 98,000