a The balance sheet of Scotia Ltd. starts with an allowance for loan losses of $3.66 million. During the year, Scotia Ltd. writes-off worthless loans amounting to $2.36 million, recovers $0.44 million on loans previously written-off, and charges current income for $2.46 million provisions for loan losses. Calculate the end of year allowance for loan losses (13 points) b. Excess reserves are insurance from deposit outflow. Suppose you hold 18 million required reserves and 55 million excess reserves at the central bank. The total interest payment on reserves from the central bank is 0.4%. If you do not hold your excess reserves at the bank, you may take loans and earn 5% in average. What is the cost of holding excess reserve at the central bank? (12 points) Show ALL workings