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Problem 1: Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2019. The branch has a balance in its Home Office account at the end of the year, after closing, of P765,000. Branch income has not been recorded by Oro's home office. During the year, Oro shipped inventory to the branch at a price of P160,000; Oro's original cost was P90,000. All but 45 percent of the inventory has been resold to unrelated parties by year-end. What is the balance in Oro's Investment in Branch account?
Select one:
Option 1: P594,500Option 2: P635,000Option 3: P765,000Option 4: P603,500
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