Moldy Mortgage Corp. has a loan portfolio with the following loans at December 31, 2013: Moldy Mortgage

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Moldy Mortgage Corp. has a loan portfolio with the following loans at December 31, 2013:

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Moldy Mortgage wants to have an allowance for loan losses comprised of the following:

0.1 percent of prime conforming loans

6.0 percent of subprime 80/20 loans

0.5 percent of pay-option ARM loans without negative amortization

10 percent of pay-option ARM loans with accumulated negative amortization

Compute the required balance for the allowance for loan losses at December 31, 2013.

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Detecting Accounting Fraud Analysis And Ethics Global Edition

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Authors: Cecil W. Jackson

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Simplify: 523.515 Note: Do not evaluate. Provide your answer below:

Moldy Mortgage Corp. has a loan portfolio with the following loans at December 31, 2013: Moldy Mortgage

Question:

Prime conforming loans Pay-option ARM loans $30 billion $10 billion without accumulated negative amortization Subprime 80/20 loans $10 billion Pay-option ARM loans with accumulated negative amortization $20 billion $70 billion

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Detecting Accounting Fraud Analysis And Ethics Global Edition

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