On January 1, 2021, Marcos Co. accepted a long-term construction project to construct a building with an initial contract price of P10,000,000 The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. During 2023, the contract price increases due to the change in the project design requested by the client.

The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction:  

Year                                                                                                 12/31/2021          12/31/2022             12/31/2023 

Cumulative costs incurred as of the end of the year                1,000,000                  ?                           10,800,000 

Realized gross profit/(loss) during the year                                    ?                      350,000                     (1,600,000) 

Percentage of completion as of the end of the year                   12.5%                       60%                            90% 

Required:

1) What is the Cost of Construction Revenue to be recognized in the Income Statement for the year ended December 31, 2023?