The Home Office in Global City bills its QC branch for shipments of goods at 25% above cost. At the close of the business on April 27, 2020, a fire gutted the branch warehouse and destroyed 70% of the merchandise stock stores therein. Thereafter, the following data were gathered: January 1 Inventory Shipments from Home Office, January 1 through April 27 Net Sales, January 1 through April 27 Undamaged merchandise recovered are marked to sell for P672,000 1,008,000 1,42,000 P378,000 What is the amount of inventory destroyed by fire per home office records at cost? A. P441,000 B. P178,500 C. P273,000 D. P892,500 How much is the branch net income as provided by GAAP? A. P273,000 B. P892,500 C. P441,000 D. P178,500