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The following table shows the balance sheet for First Community Bank. Compute the value of the bank's capital and enter it in the balance
The following table shows the balance sheet for First Community Bank. Compute the value of the bank's capital and enter it in the balance sheet. Then answer the question that follows. Balance sheet of First Community Bank as of January 4, 2021 Assets Liabilities Reserves Securities $125,000 $1,200,000 Checkable deposits $5,375,000 Loans $4,300,000 Bank's capital (net worth) Total $5,625,000 Total $5,625,000 Suppose that Gilberto, a borrower of First Community Bank, defaults on a $425,000 loan, and the collateral offered to get the loan is worthless. This i the loans outstanding portion of the bank's balance sheet, and it will the bank's capital to $ In this will situation, the bank is
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