On January 2, 20x7, Job Company established a sales agency in Mandaluyong City. During the year, the following transactions occurred: Transfer of P5,000 worth of merchandise to Mandaluyong Agency to establish a working fund. Receipts of sales orders from the agency, P50,000. Collection of agency accounts by the home office, P35,000. Home office disbursements representing agency expenses, P7,500. Replenishment of the agency working fund upon receipt of expense vouchers for P2,500. Cost of goods sold identified with the agency sales, P28,000. What is the net income (loss) of the agency for the year 20x7? 

a. P12,000 

b. P7,000 

c. P14,500 

d. P9,500