(AICPA) Dream Construction Company has consistently used the percentage-of-completion method of recognizing income. During 2021, it entered into a fixed price contract to construct an office building for P10,000,000. Information relating to the contract is as follows:

	12/31/21	12/31/22
Percentage of completion	20%	60%
Estimated total cost at completion	P7,500,000	P8,000,000
Gross profit recognized (cumulative)	500,000	1,200,000

Contract costs incurred during 2022 were

a. 3,300,00

b 3,200,000

c. 3,500,000

d. 4,800,000