Origination costs and fees 1. On January 1, 20x1, ABC Bank extended a 12%, P1,000,000 loan to XYZ, Inc. Principal is due on January 1, 20x5 but interests are due annually every January 1. ABC Bank incurred direct loan origination costs of P88,394 and indirect loan origination costs of P 18,000. In addition, ABC Bank charged XYZ a 2.5-point nonrefundable loan origination fee. How much is the interest income in 20x2? a. 104,973 b. 105,364 c. 106,339 d. 136,661