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Selected accounts from the December 31, 2015 trial balances of POGI Co. and its branch follow: POGI Co. BRANCH Inventory, Jan. 1 46,000 23,100 Branch
Selected accounts from the December 31, 2015 trial balances of POGI Co. and its branch follow:
POGI Co. | BRANCH | |
Inventory, Jan. 1 | 46,000 | 23,100 |
Branch current | 116,600 | 0 |
Purchases | 380,000 | 50,000 |
Shipments from Home Office | 0 | 209,000 |
Freight in | 15,000 | 11,000 |
Expenses | 104,000 | 58,100 |
Home office current | 0 | (106,600) |
Sales | (310,000) | (280,000) |
Shipments to Branch | (200,000) | 0 |
Branch merchandise mark up | (22,000) | 0 |
As of December 31, 2015, a shipment with a billing price of 11,000 was in transit to the branch.
Freight cost, is always 5% of the billing price.
Merchandise on hand at year-end were:
at home office, 64,000 at cost;
at branch, 33,000 at billing price and 15,000 purchased from outsiders.
How much is the combined net income for 2015?
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