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Answer all, thank you Question 8 to Question 10 are based on the Balance Sheet information of Good Bank - Bad Bank below: Good Bank:
Answer all, thank you
Question 8 to Question 10 are based on the Balance Sheet information of Good Bank - Bad Bank below: Good Bank: Cash Good loans $1,000 $300 $200 Deposits $1,000 Purchased funds $380 Equity $1,580 $280 $1,580 Bad Loans Total Bad Bank: Cash Loans $240 Bonds O Preferred stock Common stock $240 $1201 $401 $801 $240 Total Bad Bank buys the bad loans for $300. In order to finance the purchase of the bad loan from the Good Bank, the Bad Bank issues additional bonds in the amount of $60. What will be the total assets of Good Bank after the sale of the loans? A) $1,500. B) $1,200. C) $380. D) $300. E) None of the above. Question 9 (Mandatory) (10 points) What will be the amount of equity on the balance sheet of Good Bank after the sale of the loans? A) $1,200. B) $380. C) $300. D) $280. E) $200. Question 10 (Mandatory) (10 points) What is the sum of total liability and total equity for the Bad Bank after it purchases loans from the Good Bank? A) $1,200. B) $300. C) $240. D) $60. E) None of the aboveStep by Step Solution
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