Problem 2. On May 31, 2016, Kenny received P200,000 from Rogers representing the down payment on the franchise agreement signed on that date. Rogers issued promissory notes for the balance of P1,000,000, payable in four equal semi-annual installments. Franchise services are substantially completed by Kenny on semi-annual installment due on November 20, 2016 at an aggregate cost of P900,000. The first semi-annual installment due on November 30, 2016 was appropriately paid by Rogers. Accordingly, Kenny uses the accrual method in recording franchise revenue. 2. In its December 31, 2016 financial statements, how much would Kenny report as deferred franchise revenue for the year? P O 300,000 600,000 750,000