Arthur Co. entered into a contract to build a small bridge for Mark. The contract price for the bridge was P7,500,000 and Arthur estimated a total costs of P6,900,000 in 2006. The company incurred P2,300,000 of cost during 2006. By the end of 2007 it was apparent that Arthur had underestimated the real costs. The estimated total cost of project skyrocketed to P7,800.000. Construction cost incurred in 2007 totaled P4,000,000. The project was completed in 2008 at a final cost of P7,800,000. No progress billing were made under the contract and no cash was selected by the end of 2008. The amount of gross profit (loss) that must be recognized in 2007 must be: a. P300,000 loss b. P200,000 profit c. P500,000 loss d. P100,000 loss