PROBLEM U:The following information came from the books and records of the Home Office and its branch. The balances asof December 31, 2020 are as follows:Branch170,000Home office300,000SalesShipments to branchShipments from home officePurchasesOperating expensesInventory, December 31, 2019Allowance for overvaluation of branch inventory48,00060,00036,00042,00032,000120,00080,00050,00017,200There were no shipment in transit between the Home office and the branch. Both shipment accounts are properlyrecorded. The closing inventory of the branch at billed price is P16,800, P6,000 of which were acquired fromoutside suppliers. The closing inventory of the home office is P18,000. The home office applies a uniformpercentage markup on the shipments of inventory to the branch from year to year.25. How much is the overvaluation in branch's ending inventory as of December 31, 2020?A.С.15,04017,200В.2,160D.26. How much is the net income (loss) of the branch for 2020 in so far as the home office is concerned?А.21,200С.31,840В.(21,200)D.(31,840)

Name: PROBLEM U:The following information came from the books and records o
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Description: PROBLEM U:The following information came from the books and records of the Home Office and its branch. The balances asof December 31, 2020 are as follows:Branch170,000Home office300,000SalesShipments to branchShipments from home officePurchasesOpera

We are given information from the books and records from the home office as well as branch as on…

Business

Accounting

25. How much is the overvaluation in branch's ending inventory as of December 31, 2020? А. C. 15,040 В. 2,160 D. 17,200 26. How much is the net income (loss) of the branch for 2020 in so far as the home office is concerned? 21,200 (21,200) А. С. 31,840 В. D. (31,840)

25. How much is the overvaluation in branch's ending inventory as of December 31, 2020? А. C. 15,040 В. 2,160 D. 17,200 26. How much is the net income (loss) of the branch for 2020 in so far as the home office is concerned? 21,200 (21,200) А. С. 31,840 В. D. (31,840)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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5. determine combined net income (loss) of the home office and the branch for the year 2021.