On April $30,2013,$ Date and Dine entered into a franchise agreement with Food Trip Inc. to sell their products. The agreement provides an initial franchise fee of P $1,200,000$ which is payable as follows: P $400$ cash to be paid upon signing the contract, and the balance in five equal annual installments every December $1,$ starting in $2013.$ Date and Dine signs an interest$-$bearing note for the balance. The credit rating of the indicates that the money can be borrowed at $10\%.$ The present value factor of an ordinary annuity at $10\%$ for $5$ periods is $3\mathrm{.}7908.$

The agreement further provides that the franchisee must pay a continuing franchise fee equal to $5\%$ of its monthly gross sales. Food Trip Inc. incurred direct costs of P $540,000,$ of which P $170,000$ is related to continuing services and indirect costs of P $72,000,$ of which P $18,000$ is related to continuing services. The franchisee started business operations on September $2,2013$ and was able to generate sales of P $950,000$ for $2013.$ The first installment payment was made on the due date.

Assuming that the collectability of the note is not reasonably assured, how much is the net income of the franchisor for the fiscal year ended December $1,2013?$

A$)$ P $174,508$

B$)$ P $254,935$

C$)$ P $252,206$

D$)$ P $172,650$