A home office ships merchandise to the branch at 30% above cost. The allowance for overvaluation at the beginning of the year was P24,000 and at the end of the year, the balance before adjustment was P264,000, and after the adjustment, the balance is P27,000. The reported net income of the branch was P800,000. How much is the adjusted branch net income? A. 1,037,000 B. 827,000 C. 1,040,000 D. 1,064,000
A home office ships merchandise to the branch at 30% above cost. The allowance for overvaluation at the beginning of the year was P24,000 and at the end of the year, the balance before adjustment was P264,000, and after the adjustment, the balance is P27,000. The reported net income of the branch was P800,000. How much is the adjusted branch net income? A. 1,037,000 B. 827,000 C. 1,040,000 D. 1,064,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...
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A home office ships merchandise to the branch at 30% above cost. The allowance for overvaluation at the beginning of the year was P24,000 and at the end of the year, the balance before adjustment was P264,000, and after the adjustment, the balance is P27,000. The reported net income of the branch was P800,000. How much is the adjusted branch net income?
A. 1,037,000
B. 827,000
C. 1,040,000
D. 1,064,000
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