On December 31, Year 1, Occident, Inc. shipped merchandise with a list price of P90,000 to Plaza Company. The goods were sold on account with terms of net 30 days, F.O.B. shipping point. Due to an oversight, the sale was not recorded until January Year 2, and the merchandise, which was sold at a 25 percent markup, was included in Occident's perpetual inventory on December 31, Year 1. As a result, Occident's income before taxes for the year ended December 31, Year 1 was understated by