A company has consistently used the overtime/percentage of completion method. On January 2019, the company began work on a P6,000,000 construction contract. At the inception date, the estimated costs of construction was P4,500,000. The following data relate to the progress of the contract:

Income recognized at 12/31/19 -- P600,000 Costs incurred 1/10/19 through 12/31/20 -- 3,600,000 Estimated cost to complete at 12/31/20 -- 1,200,000

How much income should the company recognize for the year ended December 31, 2020?

Group of answer choices

A. P900,000

B. P535,000

C. P600,000

D. P300,000

Show solution.