On January $4,2016,$ Mr$.$ KK entered into a franchise agreement with Don HH to sell their products. The agreement provides for an initial franchise fee of P$15,000,000,$ payable as follows: P$4,200,000$ cash to be paid upon signing of the contract, and the balance in five equal annual payments every December $31,$ starting December $31,2016.$ Mr$.$ KK signs a $15\%$ interest bearing note for the balance. The agreement further provides that the franchisee must pay a continuing franchise fee equal to $5\%$ of its monthly gross sales. On October $29,$ the franchisor completed the initial services required in the contract at a cost of P$4,800,000,$ and incurred indirect costs of P$960,000.$ The franchisee commenced business operations on November $2,2016.$ The gross sales reported to the franchisor are November sales, P$492,000$ and December sales, P$570,000.$ The first installment payment was made due. Assuming the collectability of the note is reasonably assured. In its income statement for the year ended December $31,2016,$ how much is the net income?

a$)$ P$11,873,100$

b$)$ P$9,293,100$

c$)$ P$10,860,000$

d$)$ P$10,913,100$