Question
Bank management

Gross loans $300 Miscellaneous assets 50 390 Deposits Total equity Common stock 50 Non-deposit borrowings 60 Investment secur
What is the value of this banks depreciation? a. $50 Ob.$40 OC. $30 d. $70 QUESTION 3 1 points Save Answer What is the value
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Answer #1

1) Solution: Bank's depreciation: $30

Working: Gross bank premise and equipment - Net bank premise and equipment = $70- $40 = $30

 

2) Solution: Total liabilities: $450

Working: Total liabilities = Total assets - Total equity = $500 - $50 = $450

 

3) Solution: Undivided profits = $40

Working: Undivided profits = Assets - Liabilities - Common stock - Surplus = 500 - 450 - 5 - 5 = 40

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