C. The following data were taken from the records of Santa Claus Corporation and its Reindeer Branch for 2009: Santa Claus Corp. Reindeer Branch Sales P 530,000 P 157,500 Inventory, 1/1 57,500 22,250 Purchases 410,000 Shipments to Branch 105,000 Shipments from Home Office 126,000 Inventory, 12/31 71,250 29,250 Expenses 191,000 50,750 In 2009, Perry Corp. billed Luke Branch at 120% of cost which is lower by 5% than last year's 4. The true branch income (loss) is: 5. The combined net income of the home office and the branch is