On January 1, 2006, Mega Tower, a real estate company, entered into a contract to construct a building on a piece of land it has acquired and, when construction is complete, to deliver the entire property to a customer. The following information pertains to the said contract. Total cost of land P2M; Estimated total cost of construction P8M; Estimated total cost of contract P10M; Agreed purchase price P11M. In CY 2006, total construction cost incurred amount to P2M while fair value of the land is P2.5M. The contract is considered to be a multiple contract. The amount included as current asset in the financial statements of Mega Tower related to the above information under zero profit method.

On January 2, 2015, David Co signed an agreement to operate as a franchise of Reyes Co, for an initial franchise fee of 2,500,000 for 5 years. Of this amount, 500,000 was paid when the contract was signed and the balance payable in four equal annual payments beginning on December 30, 2015. Moon signed an interest-bearing note for the balance. Moons rating indicated that it can borrow money at 25% for a loan of this type. Present value of an annuity of 1 for 4 periods at 24% is 2.4. Assume that additional indirect franchise cost of 68,000 was also incurred. If the collection of the note is not reasonably assured, what is the realized gross profit for the year ended December 31, 2015?