5. (Physical Units to Include in Inventory) Respond to each of the following prompts: a. Is it true or false that physical possession of inventory items determines whether or not a company includes items in its reported inventory balance? b. The 12/31 inventory balance for ABC company was $525,000 prior to adjustments (if any) related to the following items. During a review of inventories on 12/31, ABC's internal auditors noted the following items that were not included in the 12/31 inventory balance: i. Merchandise with a cost of $30,000 is stored in ABC's storeroom on consignment from a third party. ii. ABC consigned merchandise with a cost of $10,000 to a third party for display in a showroom. iii. ABC shipped goods with a cost of $15,000 on December 30th which arrived at the customer's location on January 3rd. The terms of the sale were f.o.b. shipping point. iv. ABC purchased goods from a supplier in France at a cost of $25,000. The goods were shipped from the supplier on December 10th and had not yet arrived at ABC as of 12/31. The terms of the sale were f.o.b. destination. After adjustments for these items if necessary), what will ABC report as 12/31 ending inventory