The Czech Company reported profit before taxes of P370,000 for 2018 and P526,OOO for 2019. A later audit produced the following information: a. b. d. The ending inventory for 2018 included 2,000 units erroneously priced at P5.90 per unit. The correct cost was P9.50 per unit. Merchandise costing P 17,500 was shipped to Czech Company, FOB shipping point, on December 26, 2018. The purchase was recorded in 2018, but the merchandise was excluded from the ending inventory- because it was not received until January- 4, 2019. On December 28, 2018, merchandise costing P2,900 was sold for P4,000 to Republic Corp. Republic had asked Czech to keep the merchandise for it until January 2, when it would come and pick up. Because merchandise was still in the store at year-end, the merchandise was included in the inventory count. The sale was recorded in December 2018. Prague Company sold merchandise costing P1,500 to Czech Company. The purchase was made on December 29, 2018, and the merchandise was shipped on December 30. Terms were FOB shipping point Because Czech company's bookkeeper was on vacation, neither the purchase nor the receipt of goods recorded on the books until January- 2019.