On December 31, 2011, the books of Kidlat Corporation home office reported shipments to branch of P240,000 and unrealized profit in branch inventory of P74,000. The branchs books reported sales of P500,000 and expenses of P150,000. The branch purchases all of its merchandise from the home office. The home office ships this merchandise at 125 percent of its cost.

QUESTION: The beginning inventory of the branch at billed price must be:

64,000

70,000

60,000

56,000