Comparative trial balances of the home office of HOH Corporation and its two branches at December 31, 2018 were as

follows:

Home Office CHI Branch MIN Branch

Cash P5,000 P15,000 P22,000

Accounts Receivable 80,000 30,000 40,000

Inventories 150,000 60,000 48,000

CHI Branch 170,000

MIN Branch 165,000

Plant assets 730,000 250,000 200,000

Purchases 900,000

Shipments from home office 300,000 240,000

Expenses 300,000 75,000 50,000

Totals P2,500,000 P730,000 P600,000

Accounts payable P100,000 P45,000 P30,000

Other liabilities 80,000 15,000 5,000

Loading in branch inventories 108,000

Share capital, P10 par 500,000

Retained earnings 262,000

Home office 170,000 165,000

Sales 1,000,000 500,000 400,000

Shipments to branches 450,000

Totals P2,500,000 P730,000 P600,000

Additional Information:

Home Office and branch inventories at December 31, 2018 were:

Home Office P120,000

CHI Branch (at billed prices) P72,000

MIN Branch (at billed prices) 96,000

1. How much net income will HOH Corporation report for year-ended 2018?

a. P260,000 c. P220,000

b. P122,000 d. P595,000