State Bank has the following year-end balance sheet (in millions of dollars Assets Liabilities and equity Cash Loans $20 Deposits 180 $180 Equity 20 Total assets $200 Total liabilities and equity $200 The loans primarily are fixed-rate, medium-term loans, while the deposits are either short-term or variable-rate deposits. Rising interest rates have caused the failure of a key industrial company and, as a result, 3 per cent of the loans are considered to be uncollectable and thus have no economic value. One-third of these uncollectable loans will be charged off. (i) What is the impact on the balance sheet after the necessary adjustments are made according to book value accounting? (ii) According to market value accounting? (iii) How will the impact of rising interest rates be incorporated in the analysis?