Problem Set $4$

A Small Bank has the following Balance Sheet, rates earned on assets, and rates paid on its liabilities.

Balance Sheet

Paid in Capital Surplus $3,000,000$

Retained Earnings $,11,000,000$If the bank earns $$120,000$ in non$-$interest income, incurs $$80,000$ in non$-$interest expense, and pays $$2,500,000$ in taxes, what is its net income?