How do I transfer contacts to another user and where do they go?

You can transfer contacts to another user using the transfer option in the account . 

First, select the contacts you want to transfer and select more: 

select "transfer" 

Enter the user name of the person you want to transfer too and select transfer events if you want to move appointments as well. 

at the bottom of the page, select transfer and then it will ask you to confirm by clicking again.

When you transfer, the contacts will go to the user's account you selected. If the folder you transferred from is shared from the admin, the contacts will go to the same folder in the user account.  If the folder is not shared, they will go to the user's default folder that they have selected.