On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the...

 

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On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed fund in the fed funds market to cover the shortfall in reserves for the remainder of the month (29 days, from 4/2 to 4/30). The required yield on a discount basis was 1.S%. On April 30, 2020, Key Bank finally received the first required payments from its mortgages, loan, and T-bills, and it also paid off its fed funds loan. Key Bank was required to establish a loan loss reserve at 0.5% of the commercial luan value and the bank vwas in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities. The following accounting entries record these cash flow transactions. Accounting entries for mortgages and loan. Debit Credit Cash Interest income from mortgages Reduction in mortgage loan balance Interest income from commercial loan Accounting entries for T-bills. Debit Credit Cash T-bills $60,000,000.00 Interest income from T-bills Accounting entries for fed funds loan. Debit Credit Fed funds horrowed $3,750,000.00 Cash $3,754,536.73 Interest expense $4,536.73 Question: What was the dollar amount of (a) interest income from mortgages and (b) reduction in mortgage loan balance as of April 30, 2021? O $210,000.00; $74,487.05 O $150,000.00; $134.487.05 O $250.000.00; $124.476.04 O $189,900.00; $210.136.80 On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed fund in the fed funds market to cover the shortfall in reserves for the remainder of the month (29 days, from 4/2 to 4/30). The required yield on a discount basis was 1.S%. On April 30, 2020, Key Bank finally received the first required payments from its mortgages, loan, and T-bills, and it also paid off its fed funds loan. Key Bank was required to establish a loan loss reserve at 0.5% of the commercial luan value and the bank vwas in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities. The following accounting entries record these cash flow transactions. Accounting entries for mortgages and loan. Debit Credit Cash Interest income from mortgages Reduction in mortgage loan balance Interest income from commercial loan Accounting entries for T-bills. Debit Credit Cash T-bills $60,000,000.00 Interest income from T-bills Accounting entries for fed funds loan. Debit Credit Fed funds horrowed $3,750,000.00 Cash $3,754,536.73 Interest expense $4,536.73 Question: What was the dollar amount of (a) interest income from mortgages and (b) reduction in mortgage loan balance as of April 30, 2021? O $210,000.00; $74,487.05 O $150,000.00; $134.487.05 O $250.000.00; $124.476.04 O $189,900.00; $210.136.80

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