ABC Co. decided to open a branch in Manila. Shipments of merchandise to the branch totaled 54,000 which included a 20% mark-up on cost. The branch submitted the following report summarizing its operations for the period ended December 31, 2021. Sales on account 74,000 Sales on cash basis 22,000 Collection of account 60,000 Expenses paid 38,000 Expenses unpaid 12,000 Purchase of merchandise for cash 26,000 Inventory on hand, Dec. 31; 80% from home office 30,000 Remittance to home office

9. How much is the branchs ending inventory at cost? a. 26,000 c. 22,000 b. 20,000 d. 23,000 10. How much is the profit (loss) of the branch as far as the home office is concerned? a. (1,000) c. 1,000 b. (4,000) d. 800