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The bank writes off $34 million non-performing loans. The bank's provisions for bad and doubtful debt (lending provisions) amounted to $26 million. As a result

The bank writes off $34 million non-performing loans. The bank's provisions for bad and doubtful debt (lending provisions) amounted to $26 million.

As a result of the write off, the lending provisions ___________________, the gross loans _____________________ and bank's equity _______________.

A.

do not change; decrease by $26 million; does not change.

B.

decrease by $34 million; decrease by $34 million; decreases by $8 million.

C.

decrease by $26 million; decrease by $26 million; does not change.

D.

decrease by $26 million; decrease by $34 million; decreases by $8 million.

E.

increase by $34 million; decrease by $26 million; decreases by $8 million

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