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PROBLEM-SOLVING (15 items x 5 points) Write your answers in the space provided. Show your computations. CASE 1 (4 items) Moreno Company operates a branch in Rizal. There are shipments in transit from the home office to the branch. The home office ships merchandise to the branch at 125% of the cost in 20x1. Profit and loss data for the home office and the branch for 20x1 follows: Home Office Branch Sales P500,000 P150,000 Purchases from outsiders 400,000 30,000 Shipment to branch (at cost) 60,000 Billing price to branch 65,000 Expenses 80,000 20,000 Inventories, January 1, 20x1 Home office: Acquired from outsiders, at cost 160,000 Branch: Acquired from outsiders, at cost 15,000 Acquired from the home office at a billed price (20% above cost) 48,000 Inventories, December 31, 20x1 Home office: Acquired from outsiders, at cost 110,000 Branch: Acquired from outsiders, at cost 11,000 Acquired from the home office at a billed price in 20x1 (physical count) 42,000 REQUIRED: 1. Merchandise in transit 2. Combined cost of goods sold 3. Realized markup 4. True branch net income