Please answer the problem below.

The Kabuyao Company operates a branch in Legazpi. Operating data from the home office and the branch for 20X1 are presented below. Home Office Books Branch Books Sales P512,000 P157,000 Purchases 420,000 40,000 Shipments to branch 60,000 Shipments from home office 30,000 Expenses 120,000 25,000 Inventories, January 1 Home office 160,000 Branch- Acquired from outsiders 15,000 Acquired from home office at billed price 40,000 of 22 1% above cost Inventories, December 31 Home office 110,000 Branch- Acquired from outsiders 11,000 Acquired from home office 52.000 Required: Prepare income statements for the branch and for the home office for the year ended December 31, 20X1. 2. Prepare a combined income statement. Home office book Branch book Combined 18,000 11,000 9,000