The following is the income statement of a branch for the six-month period ending June 30, 2020:

Sales			P620,000
Cost of sales:			515,000
Shipments from H.O.		P550,000
Purchases		50,000
Total		600,000
Ending inventory from H.O	75,000	85,000
Ending inventory from outsider	10,000
Gross profit			105,000
Expenses			85,000
Net income			P20,000

The home office ships merchandise to and bills, the Branch office at 125% of cost. The rent of the branch office for six months, at a monthly rate of P1,000 was paid by the home office.

1. How much is the Home office net income from its branch office for the six months ending June 30, 2020?

2. Inventory of the Branch office at cost as of June 30, 2020 is?