(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller Seller Seller (15 points) Fred's Lawn Mower Sales opened on May 1 and during May had in inventory 3 zero turn mowers with 25 horsepower engines: Serial number 001 was added to inventory on May 1 at an amount of $4,500. Serial Number 002 was added to inventory on May 18 at an amount of $6,500. Serial number 003 was added to inventory on May 27 at an amount of $7,000. Components of the mowers were subiect to new tariffs which increased the amount that Fred had to pay for them during May. All are identical except for the color. Fred places them on his lot for sale at a price of $10,000. Fred sold one of them during May at the price of $10,000. Determine Fred's Gross Profit for his Income Statement for May and his remaining inventory for his Balance Sheet at the end of May for each of the following inventory valuation methods: First In First Out, FIFO Last In First Out, LIFO Specific Identification (assume that he sold Serial Number 002 since the Customer liked that color)