MC entered into a fixed price contract of 120 million for the construction of a road for Rosmont Corp. MC determines the stage of completion of construction contracts using the percentage of completion "cost to cost method". The estimated cost at completion is 75 million.

The following were the actual costs incurred by DMCI during the first year of the contribution:

Research and development costs for which reimbursement is not specified in the = 1,000,000

Cost of negotiating the contract (charge immediately as expense) =500,000

Marketing cost=150,000

Cost of hiring equipment= 700,000

Cost of materials purchased but not yet used in construction =2,500,000

Cost of materials used in construction =15,000,000

Cost of moving plant, equipment and materials to and from the contract site= 200,000

Administrative costs not expected to be reimbursed expense =100,000

Depreciation of equipment used in construction =600,000

Site labor costs =5,000,000

Site supervision cost= 1,000,000

What is the net income at the end of the year?