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Assets Liabilities and Equity Cash $ 5 0 m Deposits $ 1 8 5 m Loans 1 5 0 m Equity 1 5 m 2

Assets Liabilities and Equity
Cash $50m Deposits $185m
Loans 150m Equity 15m
200m 200m
The FI must write off 5% of their loans as borrowers cannot repay their loans. Show the effect of this on the above balance sheet.

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