Question

Niles Industries is a merchandising company. It currently holds $6,000 in consignment goods for Martin Corporation. In addition, it has $4,000 in FOB shipping point goods in transit to Delta Enterprises and $5,000 in FOB destination goods in transit to Troy Manufacturing. Finally, Niles has $7,000 in FOB destination goods in transit from Gregg Supply. For which group of goods does Niles hold the title? A : the $7,000 in goods in transit from Gregg Supply B : the $6,000 in goods for Martin Corporation C : the $5,000 in goods in transit to Troy Manufacturing D : the $4,000 in goods in transit to Delta Enterprises

Answer 1

Answer:

C : the $5,000 in goods in transit to Troy Manufacturing

Explanation:

The consignment goods for Martin Corporation belong to them.

The goods in-transit to Delta have already pass ownership at shipping point (at the moment the goods enter the port).

The goods from Gregg Supply do not transfer the ownership yet, as the commercial terms are FOB destination.

Same occurs with our goods in transit to Troy, they are still ours as the trasnfer of wnership is FOB destination