Mr. Jason, self-employed, had a P25 million construction project. T he said project is estimated to be completed within three years with the following costs and estimates: Cost incurred to date and Percentage of completion respectively: 1st year 10,000,000; 45%. 2nd year 16,000,000; 70%. 3rd year 22,000,000 100%. How much is the gross taxable income on the second year, assuming the taxpayer was using the percentage of completion method?

Select one:

a.P1,250,000

b.P250,000

c.P500,000

d.P-0-