The home office of Cereal Company bills merchandise to branches at 25% above home office cost. Information taken from the accounting records of Kelp Branch is as follows:

Beginning inventories (at billed prices) P 17,000

Shipments from home office (at billed prices) 42,500

Ending inventories (at billed prices) 20,000

Net loss for accounting period 1,500

The net income (loss) of Kelp branch, based on home office cost of branch merchandise is: