On December 31, 2021, the credit quality of S Co deteriorated significantly due to poor market conditions but S Co did not default on the interest payment. The probability of default during the next 12 months to December 31, 2022 was 5% and the probability of default during the remaining lifetime to December 31, 2024 was 25%. Apply discounting at 7%.

(b) What is the loss allowance at December 31, 2021?