On June 1, 2013, Ellaine Co. established an agency in Davao, sending samples costing P4,200,000 which are useful until May 31,2014 and have a salvage value of 20% of cost. A working fund of P3,412,500 is to be maintained using the imprest basis. During 2013, the agency submitted to the home office sales order amounting to P35,437,500.Sales per invoice were P27,562,500 which were duly approved by the home office. The cost of merchandised sold during the year amounted to P14,784,000 net of 4% sales discount. The cost of merchandise sold during the year is equal to 70% of the gross selling price. Vouchers for expenses amounted to P1,837,500 How much net income would be reported by the agency on December 31,2013?