BIGBANG operates and franchises restaurants around the world. As part of its franchise agreement, BIGBANG requires a franchisee to pay a non-refundable upfront franchise fee of P9,500,000 upon opening a restaurant and ongoing payments of royalties, based on percentage of sales. As part of the franchise agreement, BIGBANG provides pre-opening services, including supply and installation of cooking equipment and cash register, valued at P2,500,000 (i.e., the stand-alone selling price of the pre-operating services). In addition, the franchise agreement includes a license of intellectual property (i.e., BIGBANG’s trademark and trade name) to the franchisee. Assume that BIGBANG has determined that the license provides a right to access the intellectual property. BIGBANG has determined the stand-alone selling price of the license is P7,500,000. The franchise agreement has a term of 15 years. BIGBANG evaluates the arrangement and determines it meets the criteria to be accounted for as a contract with a customer. BIGBANG determines its pre-opening services and license of intellectual property (IP) are each distinct and, therefore, need to be accounted for as separate performance obligations (PO). How much should BIGBANG recognize as revenue from licensed IP in year 1?