The following information are taken from the books and records of Pacific Company and its branch. The balances at December 31, 2019, the second year of the company's operations in Branch Books: Sales P400,000; Expenses 100,000; in Home Office Books: Shipments to branch P200,000; Allowance for Overvaluation of branch inventory 57,500. The branch obtains all of its merchandise from the office. The home office ships the merchandise at 125 percent of its cost. The ending inventory of the branch is P40,000 at the billed price. How much is the branch net income as far as the home office is concern? Question 3Answer P112,000 P100,000 P102,000 P112,500