How much revenue is recognized as of the end of the first year?

10. VALEDICTION Construction Co. entered into a P80M fixed price contract for the construction of a private road for FAREWELL SPEECH, Inc. The performance obligation on the contract is satisfied over time. VALEDICTION measures its progress on the contract using the "cost-to-cost" method. The estimated total contract cost is P40M. The following were the actual costs incurred by VALEDICTION during the first year of the construction: Costs of negotiating the contract (charged immediately as expense) 400,000 Costs of materials used in construction 12,000,000 Costs of materials purchased but not yet used in construction 2,000,000 Site labor costs 4,000,000 Site supervision costs 800,000 Depreciation of equipment used in construction 480,000 Depreciation of idle construction equipment 240,000 Costs of moving plant, equipment and materials to and from the contract site 160,000 Costs of hiring plant and equipment 560,000 Advance payments to subcontractors (subcontracted work is not yet started) 80,000