Problem 6-4(AICPA Adapted) Loob Company had the following loans at 12% interest payable at maturity. The entity repaid each loan on scheduled maturity date, Date Amount Maturity date Term 11/1/2018 500,000 10/31/2019 1 year 2/1/2019 1,500,000 7/31/2019 6 months 5/1/2019 3,000,000 1/31/2020 9 months The entity recorded interest expense when the loans are repaid. As a result, interest expense of P150,000 was recorded in 2019, 1. What amount should be reported as interest expense for 2019? a. 150,000 b. 380,000 c. 390,000 d. 500,000 2. If no correction is made, by what amount would interest expense for 2019 be understated? a. 230,000 b. 350,000 c. 240,000 d. 0