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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![PQR operates a branch in Baguio City. The following information are provided for 2021:
Home Office
Branch
Inventories, Beg
85,000
Branch (acquired from outsiders)
9,500
Branch (acquired from Home office)
billed price 20% above cost
42,000
Inventories, End
65,000
Branch (acquired from outsiders)
6,500
Branch (acquired from Home office)
acquired at 2021, billed price
30,000
Sales
365,000
174,500
Shipment to branch
90,000
Purchase from outsiders
220,000
35,000
Advertising Expenses
13,700
2,500
Salaries Expense
25,000
9,500
Rent Expense
10,000
2,000
Miscellaneous Expense
3,300
500
Shipment from Home Office
112,500
REQUIREMENT:Compute the combined net income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0b8132c-2674-4f47-a84a-79a8edd570f8%2Ff3df85ee-3585-4f6f-a7fd-4cdcb637b12c%2Fwkszh7y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PQR operates a branch in Baguio City. The following information are provided for 2021:
Home Office
Branch
Inventories, Beg
85,000
Branch (acquired from outsiders)
9,500
Branch (acquired from Home office)
billed price 20% above cost
42,000
Inventories, End
65,000
Branch (acquired from outsiders)
6,500
Branch (acquired from Home office)
acquired at 2021, billed price
30,000
Sales
365,000
174,500
Shipment to branch
90,000
Purchase from outsiders
220,000
35,000
Advertising Expenses
13,700
2,500
Salaries Expense
25,000
9,500
Rent Expense
10,000
2,000
Miscellaneous Expense
3,300
500
Shipment from Home Office
112,500
REQUIREMENT:Compute the combined net income.
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