Question
Bank Management

The beginning balance in the allowance for loan loss account for Synopsis Bank is $500 million. The banking firm charges $2 m
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Answer #1

Part 12

Answer is option B

$520 million as adjusted allowance for loan losses

Synopsis Bank ill report adjusted allowance for loan losses = beginning balance in the allowance for loan loss + banking charges = 500+2 = $502 million

Part 13

Answer is option B

$1448 million

Net loans and leases accounted by the banks = gross loans and leases – loan loss allowance – unearned income = 1500-50-2 = $1448 million

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