Practical Accounting Problems II - Copy
PRACTICAL ACCOUNTING PROBLEMS II Problem 1. Jinky is trying to decide whether to accept a bonus of 25% of net income after salaries and bonus or a salary of P97,500 plus a bonus of 10% of net income after salaries and bonus as a means of allocating profit among thee partners. Salaries traceable to the other partners are estimated to be P450,000. What amount of income would be necessary so that Jinky would consider the choices to be equal? a. P1,100,000 b. P1,197,500 c. P650,000 d. P1,262,500 Problem 2. Susan and Suset are lawyer’s who have been operating their own separate practices as a sole proprietors. They decided to combine the two firms as a partnership on January 3,2010. The following assets were contributed by each: Susan Suset Cash P350,000 P350,000 Trade Receivables 787,500 665,000 Equipment 122,500 133,000 Fixtures 161,000 The partners agreed to split profits on the basis of gross cash collections from billing generated from clients. During 2010, Susan’s clients paid the firm a total of P5,250,000 and Suset’s clients paid P5,687,500. Expenses for the year were P3,780,000 of which P1,680,000were attributable to Susan and the balance to Suset. During 2010 Suset withdrew P2,625,000 cash for personal needs and contributed an additional computer valued at P77,000. What is the capital balance of Suset at December 31,2010? a. P3,112,900 b. P2,937,900
c. P2,016,000 d. P2,482,900 Problem 3. Jamby and Miriam have just formed a partnership. Jamby contributed cash of P2,205,000 and office equipment that cost P945,000. The equipment had been used in her sole proprietorship and had been 70% depreciated, the appraised value of the equipment is P630,000. Jamby also contributed a note payable of P210,000 to be assumed by the partnership. Jamby is to have 60% interest in the partnership. Miriam contributed only P1,575,000 merchandise inventory at fair market value. Assume the use of bonus method, the partner’s capital must be in conformity with their profit and loss ratio upon formation. In the formation of a partnership, which off the following is true? a. The agreed capital of Jamby upon formation is P2,625,000 b. The total agreed capital of the partnership is P4,375,000 c. The capital of Miriam will increase by P105,000 as a result of the transfer of capital d. There is either an investment or withdrawal of asset under the bonus method Problem 4. The following information is available concerning Random Inc. on the date the company entered bankruptcy proceedings: Account Cash Accounts Receivable Inventory Prepaid Expenses Buildings, Net Equipment, Net
Balance per books P2,860 52,260 28,000 4,300 59,000 5,600
Goodwill Wages Payable Taxes Payable Accounts Payable Notes Payable Common Stock Deficit
7,650 2,500 1,810 79,000 15,150 72,000 10,790
Inventory with book value of P20,000 is a security for notes of P10,100. The other notes are secured by the equipment. Expected realizable values of the assets are: Accounts Receivable P44,100 Inventory 18,500 Buildings 22,500 Equipment 2,000 What is the expected amount of secured creditors will receive? a. P5,050 b. P2,734 c. P4,734 d. P4,894
Problem 5. Batanes Construction Company recognized gross loss of P42,000 on its long-term project which has accumulated costs P490,000. To finish the project, the company estimates that it has to incur additional cost of P735,000. The contract price is: a. P798,000 b. P1,330,000 c. P1,225,000 d. P1,183,000 Problem 6. Mariano operates a branch in Laoag City. At close of the business on December 31,2009, Laoag Branch account in the home office
books showed a debit balance of P234,900. The interoffice accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained: a. Computer equipment costing the home office P27,000 was sent to Laoag branch. The home office will maintain the records of the asset used by the branch. Meanwhile, back at the branch no entry was made. b. The branch acquired a machinery costing P18,000. The home office will maintain the records of the asset used by the branch. The home office was not yet notified. c. The home office charged the branch for freight amounting to P2,220. It should have been charged to its customer. d. The home office inadvertently recorded a laoag branch remittance at P4,200, as collection from its customers on account. e. On December 24,2009, the branch sent a check for P9,600 to its suppliers on account. The branch erroneously recorded the transaction as a remittance to the home office and sent a copy of the debit memo to the home office. The home office this upon receiving the debit memo on December 29,2009. f. On December 26, 2009 the branch returned P6,600 of excess merchandise to the home office. The merchandise was received by the home office on December 30,2009 and credited Lanao Branch Current. g. The home office allocated advertising and rent expense totalling P5,400 to Laoag branch. The home office charged the said expense to Laguna Branch by mistake, Laoag branch had not entered the allocation at year-end.
h. A home office customer remitted P3,600 to
the branch. The branch inadvertently recorded this transaction on December 28,2009 as a transfer of cash from the home office. The home office made no entry during the year. Inventory costing P36,000 was sent to the branch by the home office on December 14,2009. The branch recorded the transaction as a purchase of merchandise on account from outsiders by mistake.
Compute the unadjusted balance of the home office current account as of December 31,2009: a. P222,480 b. P171,480 c. P188,880 d. P178,320 Problem 7.The following amounts were taken from the statement of affairs for ABC Company: Unsecured Liabilities with Priority P52,500 Stockholders’ equity 189,000 Estimated liquidation expenses that have not been entered in the accounting records 23,625 Unsecured liabilities without priority 472,500 Loss on realization of assets 236,250 How much is the total free assets? a. P401,625 b. P408,675 c. P425,250 d. P454,125 Problem 8.Ester, Judith and Martha were partners with capital balances on January 2, 2009 of P70,000, P84,000, and P62,000, respectively. Their loss sharing ratio is 3:5:2. On May 1,2009, Ester
retires from the partnership. On the date of retirement the partnership net profit from operations is P48,000. The partners agreed further to pay Ester P76,560 in settlement of her interest. Upon retirement of Ester, which of the following will result? a. Goodwill of Ester is P7,840 b. Judith’s capital after retirement of Ester is P36,400 higher than Martha. c. Bonus from Ester is P9,440 d. Bonus to Judith is P5,600 Problem 9.Eros Corporation acquired the net assets of Honey Company on January 1,2010, and made the following entry to record the acquisition: Current assets P600,000 Equipment 900,000 Land 300,000 Building 1,800,000 Goodwill 600,000 Liabilities 480,000 Common stock, P1 par 600,000 Additional paid in capital 3,120,000 The agreement further provides that additional cash payments would be made on January 1, 2012, equal to twice the amount by which average earnings of Honey Company exceed P100,000 per year, prior to January 1,2012. Net income was P200,000 in 2010 and P240,000 in 2011. Assume that the liabilities recorded in January 1, 2010 include an estimated contingent liability recorded at an estimated amount of P160,000. What should be the amount of goodwill on January 1,2012? a. P520,000 b. P600,000 c. P440,000 d. P680,000
Problem 10. Tito, Vic and Pete formed a joint venture in 2009 to sell sportswear merchandise. Pete is designed as the manager of the venture. The venture a agreed to divide profile and losses equally. The venture is terminated on December 31, 2009 even though there is still unsold merchandise. On this date, Pete’s trial balance shows the following account balances before profit or loss distribution. Debit Credit Joint Venture Cash P52,500 Joint Venture 10,500 Tito, Capital 24,500 Vic, Capital P28,000 Pete receives P7,500 for his share in the venture profit. Furthermore, he agrees to be charged for the unsold merchandise as of December 31, 2009. What is the cost of the unsold merchandise changed to Pete? a. P18,000 b. P3,000 c. P33,000 d. P12,000 Problem11. Partners PG, PD and CG share profits and losses in the ratio of 5:3:2. At the end of a very unprofitable year, they decided to liquidate the firm. The partner’s capital account balances at this time are as follows: PG P330,000 PD 373,000 CG 225,000 The liabilities accumulate to P450,000, including a loan of P150,000 from PG. The cash balance is P90,000. All the partners are personally solvent. The partners plan to sell the assets in instalment.
If PD received P54,000 from the first distribution of cash, how much did CG receive at that time? a. P30,000 b. P12,000 c. P18,000 d. P33,000 Problem 12. The Eagle Company has a branch in Davao City. As of December 31,2009, books of the home office and the branch show summaries of their reciprocal accounts as follows: Investment In Branch Dec.1 Balance P654,250 Dec.12 Remittance P94,500 8 Shipments 26 Remittances 166,500 To Branch 250,800 12 Freight On shipment 3,525 16 shipments To Branch 407,250 28 shipments To Branch 432,000 31 Expenses 60,750 Balance P1,547,575
Home Office Dec 10 Remittance P94,500 Dec 1 Balance P654,250 22Remittance 16,500 10 Merchandise Home Office 250,800 31 Remittance 144,000 18 Merchandise From Home Office 407,250 Balance P1,057,300 Additional information:
a. Merchandise was billed to the branch at cost b. The freight charged to the Davao branch on December 12 was erroneous. It should have been charged to Cebu branch. c. Expenses charged to the branch on December 31 represent allocated portions of home office expenses chargeable to branch operations. d. The branch income summary shows a credit balance of P876,750. How much is the reconciled reciprocal accounts? a. P2,426,800 b. P673,300 c. P2,276,800 d. P2,430,325
Problem 13. Shine Corporation will issue 50,000 of its P5 par value common shares for the net assets of Glow Company. Glow’s trail balance at the date of acquisition shows the following: DR CR Current Assets P840,000 Property and Equipment 1,960,000 Liabilities P1,000,000 Common stock, P5 par 360,000 Additional paid in capital 640,000 Retained Earnings 800,000 Glow’s current assets are appraised at P1,100,000 and the property and equipment was also appraised at P2,800,000. Its liabilities are fairly valued. Accordingly, Shine Corporation issued common shares with a total market value equal to that of Glow’s net assets including goodwill of P400,000.
What is the market value per share of Shine Corporation’s common shares at the date of the business combination? a. P86 b. P44 c. P58 d. P66 Problem 14. The following selected accounts appeared in the trial balance of Valentine’s Company as of December 31,2009: Installment receivable- 2008 sales P12,000 Installment receivable- 2009 sales 160,000 Inventory, December 31,2008 56,000 Purchases 444,000 Repossessions 2,400 Installment sales 340,000 Regular sales 308,000 Deferred gross profit- 2008 43,200 Operating expenses 92,000 Additional information: Installment receivable-2008 sales, December 31,2008 P114,200 Inventory of new and repossessed Merchandise As of December 31,2009 76,000 Gross profit percentage on instalment sales in 10% higher than the gross profit percentage On regular sales in 2009. Repossession was made during the year and was recorded correctly. It was a 2008 sale and the corresponding uncollected account at the time of repossession was P6,200. What is the net income for 2009 a. P108,360 b. P13,480 c. P105,880
d. P107,200 Problem 15. The following data were taken from the statement of realization and liquidation of ABC Corp. for the quarter ended June 30, 2009 Assets to be realized P515,625 Supplementary credits 796,875 Liabilities to be liquidated 843,750 Supplementary charges 731,250 Liabilities liquidated 562,500 Assets acquired 562,500 Assets realized 656,250 Liabilities assumed 281,250 Assets not realized 234,375 The ending capital balances of capital stock and retained earnings are P468,750 and P187,500, respectively. A net loss of P262,500 for the period. How much is the ending balance of cash? a. P1,125,000 b. P337,500 c. P843,750 d. P862,500 Problem 16. On December 30, 2009, Loveless Company authorized NBSB Corp. to operate as a franchise for an initial franchise fee of P1,950,000. Of this amount, P750,000 was received upon signing the agreement and the balance, represented by a note, is due in four annual payments starting November 30, 2010. Present value of P1 at 12% for periods is O.6355. Present value of an ordinary annuity of P1 at 12% for 4 periods is 3.0374. The period of refund will elapsed on January 31,2010. The franchisor has performed substantially all of the initial services but the operations of the store have yet to start. Collectibility of the note is reasonably certain. How much is the unearned franchise fee on the year ended December 31,2009? a. P1,661,220
b. P750,000 c. P911,220 d. P0 Problem 17. On April 30,2009, the capital accounts of P,Q, and R shows the following balances: PP150,000, Q-P75,000 and R-P45,000. At this time, S is admitted to the firm when he purchases a onesixth interest in the firm for P27,500. The old partners equalized their capital investments. Afterwards, all the partners agree to divide profits and losses equally. The new partnership closes its books on June 30, 2009 reporting a profit of P4,200 for two months. The partners made the following withdrawals: P and R, P450 per month; Q and S 300 per month. On June 30, 2009, S invests enough cash to increases his capital to a one-third interest in the partnership. How much cash is to be invested by S? a. P108,025 b. P68,025 c. P67,425 d. P107,425 Problem 18. The books of Magic, Inc. following balances on December 31, 2009:
Accounts Receivable P533,375 Deferred Gross Profit, unadjusted 64,600 Analysis of the aging schedule reveals following: Regular accounts P352,750 2008 installment accounts 27,625 2009 installment accounts 153,000
Sales on an installment basis in 2008 were made at 30 percent above cost and in 2009, at 33 1/3 percent above cost. What is the total realized gross profit for the year ended December 31, 2009?
a. b. c. d.
P19,975 P44,625 P38,250 P59,285
Problem 19. Ping, Pong and Pang decided to dissolve their partnership on May 31, 2009. On this date, their capital balances were as follows: Ping P87,500 Pong 105,000 Pang 35,000 The following provision for sharing profits and losses is provided in the agreement. Available income is distributed only as far as it is available. Available income is to be distributed in the following sequence: 1. Ping, who is the managing partner gets a salary of P180,000 a year; the remaining partners gets a salary of P72,000 each. 2. Interest is imputed on the average capital balances at 12% per annum 3. Any remaining profits and losses are to be shared 3:2:5 The average capital balances during the period ended were P70,000, P85,000 and P27,500, for Ping, Pong and Pang, respectively. The net income from January to May 31, 2009 was P121,500. Also, before liquidation on May 31,2009, the partnership’s cash and liabilities, respectively, were P70,000 and P157,500 (inclusive of customer deposits amounting to P4,000). Liquidation expenses of P7,500 was paid. For Pong to receive P126,400 in full settlement of his interest in the partnership, how much must be realized from the sale of the partnership’s noncash assets?
a. b. c. d.
P408,500 P416,000 P457,000 P402,375
Problem 20. Bataan Construction Company recognized gross profit of P42,000 on its long-term project which has accumulated costs of P490,000. To finish the project, the company estimates that it has to incur additional cost of P735,000. The contract price is: a. P798,000 b. P1,330,000 c. P1,102,500 d. P1,837,500 Problem 21. The Red Roses Company has a branch in Isabela City. Shipments of merchandise to the branch totaled P297,000 for the year, which included a 25% mark-up on cost. The following data summarizing branch operations for the period ended December 31, 2009: Sales on account P407,000 Sales on cash basis 121,000 Collections of accounts 330,000 Expenses paid 149,000 Expenses unpaid 41,000 Purchase of merchandise for cash 143,000 Inventory on hand, January 1 (60% from outside purchases) 114,000 Inventory on hand, December 31 (70% from home office) 165,000 Remittance to home office 302,500 Allowance for overvaluation of branch inventory amounted to P67,000 in the home office books.
In the home office books, the branch net income (loss) is: a. P16,000 b. (P15,000) c. (P7,100) d. (P5,580) Problem 22. Amor Inc., franchisor, entered into franchise agreement with Adore Inc., Franchisee on July 1, 2009. The initial franchisee fees agreed upon is P850,000,of which P150,000is payable upon signing and the balance to be covered by a noninterest bearing note payable in four equal annual anstallments. It was agreed that the down payment is not refundable, notwithstanding lack of substantial performance of services by franchiser. Probability of collection is unlikely. The following expenses were incurred: Initial services: Direct cost P235,000 Indirect cost 75,000 Continuing services: Direct cost 37,800 Indirect cost 15,000 The management of Adore has estimated that they can borrow loan at rate of 12%. The franchisee commenced its operatipns on July 31,2009 A continuing franchise fee equal to 5% of its monthly gross sales. Adore reported gross sales of P1,300,000 for the month. When Amor prepares its financial statements on August 31,2009, how much is the net income to be reported? PV factor is 3.04. a. P99,350 b. P75,640 c. P46,150 d. P35,510
Problem 23. The following information relates to Jenna and Jenny’s partners capital accounts for fiscal year ending June 30: Jenny Jenna Balance, July 1 P86,400 P115,200 Add: Additional Investment, January 1 38,400 19,200 Net Income for the year: Salaries 20,500 14,500 Interest 7,920 9,360 Bonus 3,720 Remainder 14,880 9,920 Total 171,820 168,180 Deduct: Drawings Monthly amounts 15,070 15,060 Additional drawings, June 30 2,400 403 Balance, June 30 154,350 152,717 Bonus is based on net income after salaries,interest and bonus. If the net income remains the same the following fiscal year, and if there is no change in the partnership agreement nor any additional investment, how much will Jenna’s total share of the net income be the following year? a. P33,577 b. P33,780 c. P33,696 d. P33,874 Problem 24. On July 1, 2009, TL Construction Corp. contracred to build an office building for LQ, Inc. for a total contract price of P2,950,000. Estimated total contract costs is P2,600,000. Costs incurred to date are as follows related to the project were as as follows: Cost of direct materials used P200,000
Cost of direct labor, including site supervision of P50,000 Cost of indirect materials used Cost incurred in obtaining the contract previously written of Depreciation of plant and equipment used on the contract Payroll of design and technical department allocated to the contract Insurance costs (2/3 for other contracts) Costs of contracted research and development activities Depreciation of idle plant and equipment not used on a particular contract Selling costs General and administrative expenses specifically included under the terms of the contract Borrowing cost incurred during the construction period Advances made to subcontractors What is the realized gross profit for a. P104,335 b. P111,055 c. P125,195 d. P134,610
150,000 55,000 70,000 120,000 80,000 180,000 105,000 60,000 45,000 30,000 130,000 100,000
Problem 25. Forever, Inc. granted a franchise to Hopeless Romantic for the Manila area. The franchisee was to pay a franchise fee of P250,000, payable in five equal annual anstallments starting with the payment upon signing of the agreement. The franchise was to pay monthly 3% of gross sales of the preceding month. Should the operations of the outlet prove to be unprofitable, the franchise may be canceled wiyh whatever obligations owing Forever, Inc. in connection with the P250,000 franchise fee waived. The prevailing interest rate for a non-interest bearing note is 14%. The first
year generated a gross sales of P1,250,000. What is the amount of unearned franchise fee after the first year of operations? a. P287,500 b. P145,700 c. P195,700 d. P250,000 Problem 26.Lovebirds Corporation sells goods on the installment basis. For the year just ended, the following were reported: Cost of installment sales P525,000 Loss on repossession 13,500 Fair value of repossessed merchandise 112,500 Account defaulted 180,000 Deferred gross profit,end 108,000 How much was the collections for the year? a. P210,000 b. P264,000 c. P390,000 d. P415,715 Problem 27. On December 31,2009, ABC Corporation combined net income together with its Bacolod branch amounted to P350,000. During the year, shipments of merchandise to the branch amounted to P135,000. On June 30,2009, the home office purchased and recorded fixed asset for the use of the branch amounting to P200,000. Useful life is 5 years. Remittance of P70,000 was made during the year to the home office. Purhases of merchandise from outside suppliers amounted to P125,000. Ending inventories amounted to P80,000. Sales for the year was reported at P400,000. The branch paid selling and administrative expenses amounting to P75,000. How much is the separate income of the home office? a. P105,000
b. P225,000 c. P245,000 d. P125,000 Problem 28. Carol and Manny agreed on a joint venture to purchase and sell custom-made items. They agreed to contribute P250,000 each to be used in purchasing the merchandise, share equally in any gain or loss, and record their venture transactions in their individual books. Upon termination of the venture, the following information were available: Joint venture account credit balances: Carol,P180,000; Manny, P202,000 Cost of custom-made items taken:by Carol, P15,000; Manny, P29,0000 Expenses paid: by Carol, P18,500; Manny, P23,000 Compute for the joint venture sales. a. P882,000 b. P838,000 c. P923,500 d. P879,500 Problem 29. On July 1,2009 the Venus Company acquired the net assets of Cupid Company for a consideration transferred of P16,000,000. At the acquisition date, the carrying amount of Cupid’s net assets was P10,000,000. At the acquisition date, a provisional fair value of P12,000,000 was attributed to the net assets. An additional valuation received on May 31,2010 increased this provisional fair value to P13,000,000 and on July 30,2010 this fair value was finalized at P14,000,000.
What amount should Venus present for goodwill in its statement of financial position at December 31,2010? a. P6,000,000 b. P3,000,000 c. P4,000,000 d. P2,000,000 Problem 30. The following is the income statement of Makati City Branch for the year ended December 31,2009. Sales P600,000 Cost of Sales Inventory, beginning 80,000 Shipments from home office 350,000 Purchases from outsiders 110,000 Total goods available for sale 540,000 Inventory, ending (100,000)(440,000) Gross Profit 160,000 Operating Expenses (100,000) Net Income P60,000 20% of the beginning inventory and 46% of the ending inventory came from outside purchases. After effecting the necessary adjustments the true net income of the branch was ascertained to be P132,000. How much is the percentage mark-up on cost imposed by the home office to the branch and the cost of goods sold of the branch in as far as the home office is concerned? a. 25%; P288,000 b. 25%; P368,000 c. 20%; P288,000 d. 20%; P368,000 Problem 31. Lakers Corp.,which began operations on January 1, 2009, appropriately uses the
Installment method of accounting for revenues. The following information is available for the years ended December 31,2009 and 2010: 2009 2010 Cost of installment sales P1,500,000 P3,000,000 Gross Profit realized on sales made in 2009 225,000 135,000 2010 300,000 Gross profit percentage based on cost 30% 40% What is the ending balance of installment accounts receivable on December 31,2010? a. P3,540,000 b. P2,550,000 c. P2,662,500 d. P1,837,500 Problem 32. Nora and Vilma formed a joint venture to purchase and sell a special type of merchandise. The venturers agreed to contribute cash of P270,000 each too be used in purchasing the merchandise, and to share profits and losses equally. They also agreed that each shall record his purchases, sales, and expenses in their own books. Upon termination of the joint venture, the following data are made available: Nora Vilma Joint Venture P234,000 CR P170,600 DR Inventory Taken 10,800 33,750 Expenses paid from JV Cash 5,400 9,900 How much cash is to be received by Vilma in the final settlement? a. P267,950 b. P290,225 c. P323,975
d. P280,325 Problem 33. Frenchkiss Corporation opened a sales agency in Sta. Rosa Laguna in 2009. The following is a summary of the transactions of the sales agency: List price P342,000 Volume discount 5% and 5% Freight on shipment of agency 7,000 Collections, net of 7.5% discount 249,750 Selling expenses paid from the agency Revolving fund 19,250 Administrative expenses allocated to Agency 5% of net sales Samples shipped to agency: Cost 28,700 Inventory,end 15,925 Remaining receivable is estimated to be 95% collectible. The Company’s gross profit rate based on invoice price is 40% excluding the freight cost on shipments to agency. What is the net income of the agency for 2009? a. P34,334 b. P49,767 c. P47,834 d. P47,535 Problem 34. Olongapo Construction Company entered into two construction jobs which both commenced in 2009 (in thousands). Project 1 Project 2 Contract price P52,500 P37,500 Costs incurred during 2009 30,000 35,000 Estimated Cost to Complete 15,000 8,700 General and administrative Expenses 2,500 1,250 Billings for clients during 2009 31,500 30,000
Collections during 2009
Based on the information given, how much is the gross profit would Colt report in its 2009 income statement? Percentage of completion Zero Profit a. (6,200,000) (1,200,000) b. 5,000,000 (6,200,000) c. (1,200,000) (6,200,000) d. 1,300,000 (1,200,000) Problem 35. On January 1, 2010, Congratulations, Inc. issues 12,000 shares of its P10 par value stock to acquire the net assets of Successful, Inc. Underlying book value and fair value information for the balance sheet items of Successful at the time of acquisition are as follows: Book Value Fair Value Cash P80,000 P80,000 Accounts Receivable 120,000 120,000 Inventory 60,000 115,000 Land 50,000 70,000 Building and Equipment 400,000 350,000 Less:Accumulated depreciation(120,000) Total Assets 590,000 735,000 Accounts Payable P30,000 Bonds Payable 200,000 Common Stock (P5 par value) 150,000 Additional Paid-in Capital 70,000 Retained Earnings 140,000 Total Liabilities and Equities590,000
Successful, Inc. shares were selling at P18 and Congratulations, Inc. were selling at P50 just before the merger announcement. Additional cash payments made by Congratulations, Inc. in completing the acquisitions were:
Broker’s fee paid to firm that located Successful P15,000 Engagement fee on agreed upon procedures For share issuance 10,000 Legal fees for the merger 12,000 Cost of SEC registration of Congratulations Share 7,000 What is the amount of additional paid in capital related to the issuance of shares? a. P473,000 b. P436,000 c. P448,000 d. P463,000