(Solved by Humans)-the australian national bank lent %500000 in the normal course of

Question

?the australian national bank lent %500000 in the normal course of its business to peter who , on 14 march 2016, was decalred bankup, peter approached the bank and asked the bank to forgive him part of the debt because there was very little likehood that he would ever be able to repay it . the bank agreed to forgive $300000 of the debt on 3 may 2016 and wrote to peter advising him that he need only pay $200000 . on 29une 2016 the bank, on reviewing its loans register, decided to write off and claim the total amount of $500000as a bad debt deduction. the bank manager made a written note of this in the loans register, in addition, the bank manager included a provision for bad debts of $400000 in the accounts of the bank based on her estimate of other loans that may turn out to be bad in the future . based on this information, what amount can the bkan claim as a bad debt under 225-35 ITAA97 for the year ended 30 june 2016