Reference no: EM132640897

In May 2016, Cherry Company relocated an employee from Manila head office to a branch in Zamboanga City. On June 30, 2016, the costs were estimated to be P350, 000 analyzed as follows:

Cost for shipping                                                                                       30,000

Airfare                                                                                                    10,000

Temporary accommodation cost for May and June                                           80, 000

Temporary accommodation cost for July and August                                        90, 000

Reimbursement for lease break cost paid in July (lease was terminated in May)       20,000

Reimbursement for cost of living increases for the period May 1, 2016 to May 1, 2017 120,000

Problem 1: What amount should be reported as provision for relocation costs on June 30, 2016?

a. 250,000

b. 240,000

C. 160,000

d. 140,000