ALPA is engaged by the Sony Corporation in 2006 to examine the books and records and to make whate corrections are necessary. An examination of the accounts discloses the following: a. Dividends had been declared on December 15 in 2004 and 2005 but had not been entered in the books un paid. b. Improvements in building and equipment of P9,600 had been debited to expense at the end of April 200 Improvements are estimated to have an 8-year life. The company uses the straight-line method in recordi depreciation and computes depreciation to the nearest month. C. The physical inventory of merchandise had been understated by P3,000 at the end of 2004 and by P4,300 the end of 2005. d. The merchandise inventories at the end of 2005 and 2006 did not include merchandise that was then in tran and to which the company had title. This shipments of P3,800 and P5,500 were recorded as purchases January of 2006 and 2004, respectively. e. The company had failed to record sales commissions payable of P2,100 and P1,700 at the end of 2005 a 2006, respectively. F. The company had failed to recognized supplies on hand of P1,200 and P2,500 at the end of 2005 and 200 respectively. The Retained Earnings account showed the following postings: Date Item Debit Credit 2004 Jan 1 Balance 81,000 Dec 31 18,000 2005 Jan 10 Net income for year Dividends paid 15,000 Mar 6 Stock sold - excess over par 32,000 Dec31 Net loss for year 11,200 2006 Jan 10 Dividend paid 15,000 Dec 31 Net loss for year 12,400 Questions: 1. Corrected net income of 2004 a. P 19,800 b. P 15,600 C. P 13,600 d. P 16,800 2. Corrected net loss of 2005 a. P 16,000 b. P 14,000 C. P 12,000 d. P 10,000 3. Corrected net loss of 2006 P 16,200 P 15.800 P 15,200 d. P 12,800