A bank which starts with ALL of $1.48 million at the beginning of the year,charges off worthless loans of $0.94 million during the year,recovers $0.12 million on loans previously charged off and charges current income for a $1.02 million provision for loan losses,will have an ALL at the end of the year of:

Question

Quizplus · Accepted Answer

Starting with $1.48 million and charging off $0.94 million gives a balance of $0.54 million. 
Recovering $0.12 million on previously charged off loans increases the balance to $0.66 million.
A provision of $1.02 million for loan losses reduces the balance to $(0.36) million.
Adding the initial ALL of $1.48 million gives a final ALL of $1.68 million.

A Bank Which Starts with ALL of $1