Answer:
c. $26,000.
Explanation:
The computation of the actual reserve is as follows:
Actual reserve is
= Reserve requirement + excess reserve
= $80,000 × 20% + $10,000
= $16,000 + $10,000
= $26,000
hence, the actual reserve is $26,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
