A company is a mortgage lender, and the company's portfolio of loans held for investment at December 31, 2006 is as follows:

Principal amount of loans at year end (excluding negative amortization)	$100 million
Interest earned for year	$5 million
Negative amortization accrued during the year	$2 million
Allowance for loan losses at end of year	1% of (loan principal plus accumulated negative amortization)
Accumulated negative amortization at beginning of 2006 (none of this was paid during the year)	$1 million

Calculate the amount of loans held for investment net of allowance for loan losses on the balance sheet at December 31, 2006: