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Problem 1: Lakas, Inc., starts a branch operation to sell ore of its merchandise. Inventory costing P60,000 is shipped to this branchat a billed price of P90,000, During the initial year, the home office pays PI7, 000 in expenses for the branch. The branch sells 80 percent of the inventory that it received for P110,000 and it remits P70,000 in cash to the home office. What is the correct Home Office account balance on the records of the branch? Closing entries have not been made.
A P 7,000
B. P 37,000
C. P75,000
D. P147.000
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