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Pampanga Company bills its Tarlac Branch for merchandise at 140% of cost. At the end of December 31, 2020, the branch reported the following information:
Inventory, January 1 P 168,000
Shipments received 1,820,000
Inventory, December 31 294,000
Problem 1: What should be the balance for overvaluation of the branch inventory on December 31, 2020?
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