Solid Constructions, Inc. agreed to construct an apartment building in CM Recto Avenue at a price of P30,000,000. The information relating to costs and billings for this contract is shown below: Years 2015 2016 2017 Costs incurred to date P7,000,000 P15,000,000 P19,625,000 Estimated costs yet to be incurred 13,000,000 5,000,000 0 Customer billings to date 3,750,000 18,235,125 30,000,000 Collections of billings to date 3,000,000 14,375,650 27,500,000 Assuming Solid uses cost-to-cost method of percentage of completion method, compute the amount of (1) construction revenue, and (2) gross profit recognized in 2016.

A. (1) P12,000,000, (2) P4,000,000

B. (1) P22,500,000, (2) P4,000,000

C. (1) P12,000,000, (2) P7,500,000

D. (1) P22,500,000, (2) P7,500,000