On January 1, 2017, the gross loan account had a balance of $68. The bank which starts with ALL of $1.59 million at the beginning of the year, charges off worthless loans of 50.64 million during the year. Management believes that current income should be charged with $1.07 for provisions of loan losses. How this will affect the Allowance for Loan Losses and the Net Loans? (6 points)