On January 1, 2013, Red, White and Blue (the joint operators) jointly buy a helicopter for P30million cash. The Joint arrangement includes the following agreements: - The parties are the joint owners of the helicopter. - The helicopter is at the disposal of each party for 70 days each year. - The parties may decide to use the helicopter or lease it to a third party. - The maintenance and disposal of the helicopter require the unanimous consent of the parties. - The contractual arrangement is for the expected life (20 years) of the helicopter and can be change only if all the parties agree. The residual value of the helicopter is P2million. - Revenues and expenses are to be shared equally among the joint operators. In 2013 the parties paid P300,000 to meet the costs of maintaining the helicopter. In 2013 each party also incurred costs of running the helicopter when they made use of the helicopter (e.g. Red incurred costs of P200,000 on pilot fees, aviation fuel and landing costs). In 2013, the parties earned rental income of P2.5 million by renting the helicopter to others. Requirement: What is the net income (loss) of the joint operation on December 31, 2013?

a. P700,000

b. P500,000

c. P800,000

d. P2,000,000