Reference no: EM133114866
Question - AC Company provided the following information for the year ended December 31, 2021
Contribution - 125,000
Delivery expense - 425,000
Depreciation - delivery truck - 60,000
Depreciation - office - 35,000
Depreciation - store equipment - 25,000
Dividends paid - 450,000
Dividends revenue - 50,000
Doubtful accounts - 30,000
Income tax - 280,000
Freight in - 145,000
Gain on sale of equipment - 10,000
Interest revenue - 20,000
Loss on sale of trading securities - 50,000
Loss from inventory write down - 150,000
Merchandise inventory, Jan 1 - 1,100,000
Office salaries - 950,000
Purchase discounts - 45,000
Purchases - 4,600,000
Retained Earnings, Jan 1 - 550,000
Sales - 8,750,000
Sales returns and allowances - 150,000
Sales salaries - 600,000
Store supplies - 150,000
Inventory at year-end was valued at P850,000 (1,000,000 cost less the 150,000 write down of inventory to net realizable value.)
The company had a prior period error by understating depreciation in 2020 by P200,000.
Required - Compute the net income?