8. MagisipKa Shop established the NagiisipAko Branch on January 2, 2002. During its first year of operation, MagisipKa Shop shipped to the branch merchandise costing P200,000. Mark-up is at 20% based on billed price. Freight cost of P5,000 were paid by the home office. Sales by the branch are P300,000 and operating expenses are P64,000, all for cash. On December 31. 2002, the branch took a physical inventory that showed merchandise on hand of P48,000 at billed price, freight cost not yet included. Both the home office and the branch use the periodic inventory system.

What is the amount of allowance for overvaluation realized for the year? ___________

What is the correct branch net income to be reported by home office? ___________

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