Problem 3 Cebu branch submitted the following data to its home office in Manila for 2016, its first year of operation: Sales 2,300,000 Shipments from Home Office 1,850,000 Operating Expenses 235,000 Home Office 480,000 Shipments to the branch are billed at cost. The December 31 inventory of the branch was P 255,500. 1. How much is the Net Income for the year 2016?* 705,500 950,500 470,500 950,000 2. What is the balance of the Investment in Branch account on December 31, 2016 on the Home office books? * 480,000 950,500 470,500 950,000