The income statement of Pampanga Branch to the Home Office for the month of December 2014 is shown below. After effecting the necessary adjustments the true net income of the Branch was ascertained to be Php156,000. 600,000 Sales Cost of Sales: Inventory, December 1 Shipments from Home Office Local purchases Total available for sale Inventory, December 31 Gross Margin Operating Expenses Net income for december, 2014 80,000 350,000 30,000 460,000 100,000 360,000 240,000 180,000 60,000 The branch inventories were: Merchandise from home office Local purchases Total 12/01/2014 12/31/2014 70,000 84,000 10,000 16,000 80,000 100,000 Compute for the following: (1) The billing price based on cost imposed by the home office to the branch; and (2) The balance of allowance for overvaluation of branch December 31, 2014 after adjustment. Correct answer: (1) 140%; (2) Php24,000