1.The following data pertains to the shipments of merchandise from Home Office to Branch during 2013:

Home office's cost of merchandise

P350,000

Inter-office billings

420,000

Sales by branch to outsiders

520,000

Merchandise inventory on December 31, 2013

50,000

In the combined statement of comprehensive income of the Home Office and the Branch for the year ended December 31, 2013, what amount of the above transactions should be included as sales?

a)P570,000

b)P520,000

c)P470,000

d)P350,000