kindly explain

Appari Bank granted a loan to a borrower on January 1, 2018. The interest rate on the loan is 10% payable annually starting December 31, 2018. The loan matures in five years on December 31, 2022. Principal amount - 4,000,000 Origination fee received from borrower - 350,000 Direct origination cost incurred - 61,500 The effective rate on the loan after considering the direct origination cost incurred and origination fee received is 12%. What is the carrying amount of the loan receivable on December 31, 2018? Select one: a. P4,243,120 b. P3,756,880 O c. P3,600,000 O d. P4,000,000 Which of the following costs of conversion cannot be included in cost of inventory? Select one: a. Factory overheads based on normal capacity b. Factory rent and utilities c. Cost of direct labor O d. Salaries of sales staff (sales department shares the building with factory supervisor) If a company incorrectly includes consignment items in the ending inventory, the net effects on the cost of goods sold and profit for the period, respectively, are Select one: a. Overstatement, overstatement O b. Overstatement, Understatement C. Understatement, Overstatement O d. The next period's account will be correct