Entity A acquires inventories and incurs the following costs:

Purchase price, gross of trade discount, P100,000

Trade discount, P20,000

Non-refundable purchase tax, not included in the purchase price above, P5,000

Freight In (Transportation costs), P15,000

Commission to broker, P2,000

Advertisement costs, 10,000

How much is the cost of the inventories purchased?

• Answer not given
• P100,000
• P102,000
• P122,000
• P97,000