The company was granted by the government P10,000,000, of which, 50% shall be used to construct a building to serve as a school for the marginalized. The other half shall be used to pay for the expenses of the school for the next four years. The building was done on January 1, 2015 for a total cost of P7,000,000 and is estimated to have a useful life of 10 years with no salvage value. The expected expenses of the school for the next four years are Year 1: P500,000 Year 2: P1,000,000 Year 3: 2,000,000 Year 4: 2,500,000. What is the balance of the deferred income from government grant account as of December 31, 2016? P7.950.000 P7.750.000 P7.500.000 P9.083.333