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ABC branch submitted the ff data to its home office in XYZ Sales 4,000,000 Shipments from Home office 2,100,000 Operating Expenses 15% of the COGS

ABC branch submitted the ff data to its home office in XYZ

Sales 4,000,000

Shipments from Home office 2,100,000

Operating Expenses 15% of the COGS

Home Office 180,000

Ending Inventory 280,000

1. Assuming a tax rate of 30%, how much would be the net change in the home office account?

2. How much would be the estimated balance of the investment in branch account?

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