The LL Company established a branch in Makati City on June 1, 2019. The branch is to
Question:
The LL Company established a branch in Makati City on June 1, 2019. The branch is to receive substantially all merchandise from the home office. During the remainder of 2019, shipments to the branch amounted to P180,000 which included a 20% mark-up on cost. The branch purchased P45,000 additional merchandise for cash and reported unsold merchandise of P60,000 at year-end. The branch made sales of P292,500, paid expenses of P72,000 and remitted to the home office all sales proceeds. The allowance for overvaluation of branch inventory account on the home office books showed a balance of P7,500 after adjustment.
The branch inventory on December 31, 2019 at cost amounted to
45,000
52,500
52,000
50,000
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman