7. EEE Company has a branch in Davao City. Davao branch receives all its merchandise from EEE at 25% above cost and sells them at 40% mark-up on cost. EEE also sells merchandise to outsiders at 40% above cost. Below are the excerpts from the trial balance of EEE and Davao branch: Home Office Branch Sales 5,880,000 3,360,000 Purchases 6,250,000 Inventory, beginning 350,000 200,000 Shipment to Branch 2,000,000 Shipment from HO 2.375,000 Allowance for overvaluation 540,000 Operating Expenses 1,200,000 325,000 Determine the following: a. Inventory of branch on December 31 b. Consolidated inventory c. True income of the branch d. Consolidated Net Income e. Allowance for Overvaluation