Question 8 to Question 10 are based on the Balance Sheet information of Good Bank - Bad Bank below:

Good Bank:
Cash	$200	Deposits	$1,000
Good loans	$1,000	Purchased funds	$300
Bad Loans	$380	Equity	$280
Total	$1,580		$1,580
Bad Bank:
Cash	$240	Bonds	$120
Loans	0	Preferred stock	$40
		Common stock	$80
Total	$240		$240

a) Bad Bank buys the bad loans for $300. In order to finance the purchase of the bad loan from the Good Bank, the Bad Bank issues additional bonds in the amount of $60. What will be the total assets of Good Bank after the sale of the loans?

A)

$1,500.

B)

$1,200.

C)

$380.

D)

$300.

E)	None of the above.

b) What will be the amount of equity on the balance sheet of Good Bank after the sale of the loans?

A)

$1,200.

B)

$380.

C)

$300.

D)

$280.

E)

$200.

c) What is the sum of total liability and total equity for the Bad Bank after it purchases loans from the Good Bank?

Question 10 options:

A)

$1,200.

B)

$300.

C)

$240.

D)

$60.

E)	None of the above.