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Bad Bank buys the bad loans for $150. The proceeds of the loan sale are used by Good Bank to pay off purchased funds. 700
Bad Bank buys the bad loans for $150. The proceeds of the loan sale are used by Good Bank to pay off purchased funds. 700 Good Bank: Cash Good loans Bad loans Totals 300 300 Deposits 600 Purchased funds 200 Equity 1,100 100 1,100 Bad Bank: Cash 270 130 Loans - Bonds Preferred stock Common stock 50 90 Totals 270 270 The total assets of Good Bank after the sale of the loans is .(Answer in a whole number without decimal point.) The amount of equity on the balance sheet of Good Bank after the sale of the loans is (Answer in a whole number without decimal point.) If the proceeds of the loan sale are used to pay off purchased funds, the balance of the purchased funds for Good Bank after the transaction is .(Answer in a whole number without decimal point.)
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