On July 1, 2020, Catherine Company handed over to a client a new computer system. The contract price for the supply of the system and after-sales support for 12 months was P800,000.

The entity estimated the cost of the after-sales support at P120,000 and it marked up such cost by 50% when tendering for support contracts.

What amount of total revenue should be recognized for 2020? a. 620,000 b. 800,000 c. 710,000 d. 0