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Problem 1 1) The branch net income from the perspective of the home office is P116,000 - P104,000 = P12,000. 2) To compute the combined net income, add the net income of the home office (Sales - Expenses - Shipments to Branch = P310,000 - P104,000 - P200,000 = P6,000) and the branch (Sales - Expenses - Shipments from Home Office = P280,000 - P58,100 - P209,000 = P12,900) for a total of P6,000 + P12,900 = P18,900. Problem 2 The combined net income is

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LabLab Chatto

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EN