Problem 1 The following information are extracted from the books and records of Maroon Company and its Red branch. The balances are at December 31, the fourth year of the company's operations. Home Office Branch Books Books Sales P600,000 Shipments to branch P200,000 Shipments from Home Office 240,000 Purchases 60,000 Expenses 120,000 Inventory, January 1 112,000 Allowance for overvaluation of P56,000 branch inventory There are no shipments in transit between the HO and branch. Both shipments accounts are properly recorded. The ending inventory at billed price includes merchandise acquired from the HO in the amount of P60,000 and P7,000 acquired from vendors for total of P67,000. Question No. 1 How much of the beginning inventory was acquired from "outsiders"? Question No. 2 How much is the true branch net income