Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2019. The branch has a balance in its Home Office account at the end of the year, after closing, of P765,000. Branch income has not been recorded by Oro's home office. During the year, Oro shipped inventory to the branch at a price of P160,000; Oro's original cost was P90,000. All but 45 percent of the inventory has been resold to unrelated parties by year-end. What is the balance in Oro's Investment in Branch account? Select one: P594,500 P635,000 P765,000 P603,500
Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2019. The branch has a balance in its Home Office account at the end of the year, after closing, of P765,000. Branch income has not been recorded by Oro's home office. During the year, Oro shipped inventory to the branch at a price of P160,000; Oro's original cost was P90,000. All but 45 percent of the inventory has been resold to unrelated parties by year-end. What is the balance in Oro's Investment in Branch account? Select one: P594,500 P635,000 P765,000 P603,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2019. The branch has a balance in its Home Office account at the end of the year, after closing, of P765,000. Branch income has not been recorded by Oro's home office. During the year, Oro shipped inventory to the branch at a price of P160,000; Oro's original cost was P90,000. All but 45 percent of the inventory has been resold to unrelated parties by year-end. What is the balance in Oro's Investment in Branch account?
Select one:
P594,500
P635,000
P765,000
P603,500
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