Lake Construction Company has consistently used the percentage of completion method in recognizing income. During 2021, Lake entered into a fixed-price contract to construct an office building for P10,000,000. Information relating to the contract is as follows: Percentage of completion Estimated total cost at completion Income recognized (cumulative) Contract costs incurred during 2022 were: 3,200,000 3,300,000 3,500,000 4,800,000 Gross profit recognized during 2022 amounted to: 100,000 300,000 600,000 700,000 As of December 31 2021 2022 20% P 7,500,000 500,00 60% P 8,000,000 1,200,000