Question

The buyer would report the inventory in its balance sheet for items:

a.purchased with a buyback agreement.
b.shipped f.o.b. destination and in transit.
c.purchased f.o.b. shipping point and in transit.
d.received on consignment.

Answer 1

The buyer would report the inventory in its balance sheet for items purchased f.o.b. shipping point and in transit.

Step-by-step explanation:

The buyer would report the inventory in its balance sheet for items purchased f.o.b. shipping point and in transit. This is because when an item is purchased f.o.b. shipping point, ownership and the risk of loss transfer to the buyer when the goods are shipped. So, even if the items are in transit, they belong to the buyer.