Reference no: EM133247274

Belly Bun Company opened a branch in Subic at the beginning of 2022. The branch extends credit, makes collections, pays expenses from cash receipts, and acquires goods exclusively from the home office. During 2022, goods shipped by the home office to the branch, at a billing price of 125% of cost, amounted to P208,000, of which P25,000 remained in the branch's year-end inventory. Other branch transactions in 2022 were as follows: sales, all on credit, P234,860; expenses, of which P3,000 are unpaid at year-end, P40,000; collections on account, after deducting discounts of P2,960, P168,000; and total remittances to the home office, P125,000. How much is correct net income(loss) of the branch.

P8,900 net income

P19,100 net loss

P36,600 net income

P45,500 net income