$\frac{1}{1}$ point

In $20$x$4,$ Kalye Construction Company was contracted to build the private road network of Alaya

Subdivision for P$100$ million. The project was expected to be finished in $2$ years, and the contract

provided for:

$A$ five percent mobilization fee $($to be deducted from the last billing$),$ payable within $14$ days

from the contract signing. A retention provision of ten percent on all billings payable with

the final bill atter the complete project is cancelled.

$$ ayment of progress billings within $7$ days from acceptance.

Kalye, which uses the percentage$-$of$-$completion method of accounting for income, estimated a $25\%$

gross margin on the project. By the end of the year, Kalye had presented progress billing to Alaya

corresponding to $50\%$ completion. Alaya accepeted all the bills presented, except one for $10\%$ which

was accepted on January $5$ of next year. With the exception of the second to the last billing for $8\%$

which was due on January $3$ of next year, all accepted billing were settled. In $20$x$4,$ Kalye

Construction Company realized gross profit from the project the amount of:

P$7,500,000$

P$10,000,000$

P$12,500,000$

P$25,000,000$