ABC Company operates a branch. Operating data for the home office and the branch for 2021 are as follows: (see image below) Determine the Branch December 31, 2021 Inventory at cost. Determine combined net income (loss) of the home office and the branch for the year 2021.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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ABC Company operates a branch. Operating data for the home office and the branch for 2021 are as follows: (see image below) Determine the Branch December 31, 2021 Inventory at cost.

Determine combined net income (loss) of the home office and the branch for the year 2021. 

Home Office
Branch
Sales
P 256,000
P 78,500
Purchases from outsiders
210,000
20,000
Shipments to branch:
Cost to home office
Billing price to branch
Expenses
Inventories, January 1, 2008:
Home office acquired from outsiders, at cost
30,000
40,000
12,500
60,000
80,000
Branch:
Acquired from outsiders, at cost
Acquired from home office, at billed price
(which averaged 22 % above cost)
Inventories, December 31, 2008:
Home Office, acquired from outsiders, at cost
7,500
24,500
55,000
Branch:
Acquired from outsiders, at cost
Acquired from home office, at 2008 billed
price
5,500
26,000
Transcribed Image Text:Home Office Branch Sales P 256,000 P 78,500 Purchases from outsiders 210,000 20,000 Shipments to branch: Cost to home office Billing price to branch Expenses Inventories, January 1, 2008: Home office acquired from outsiders, at cost 30,000 40,000 12,500 60,000 80,000 Branch: Acquired from outsiders, at cost Acquired from home office, at billed price (which averaged 22 % above cost) Inventories, December 31, 2008: Home Office, acquired from outsiders, at cost 7,500 24,500 55,000 Branch: Acquired from outsiders, at cost Acquired from home office, at 2008 billed price 5,500 26,000
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