Question: QUESTION 9 $280 Question 9 to Question 10 are based on the following balance sheet information of two different banks: Good Bank, and Bad Bank,

QUESTION 9 $280 Question 9 to Question 10 are based on the following balance sheet information of two different banks: Good Bank, and Bad Bank, as below Good Bank: Cash $200 Deposits 5970 Good loans $1,000 Purchased funds S500 Bad Loans 5875 Equity $605 Total $2,075 $2,075 Bad Bank: Cash $1,000 Bonds Loans 0 Preferred stock $40 Common stock $680 Total $1,000 $1,000 Bad Bank buys all the bad loans tronk the Good Bank for $728. 5500 out of the $725 proceeds of the loan sale are used by Good Bank to pay off purchased tunds, What will be the total assets of Good Bank after the sale of the loans? A. $1,425 B. $1,200 C. $1,000 D. 5875 E None of the above QUESTION 10 What will be the amount of equity on the balance sheet of Good Bank after the sale of the loans? O A $1,425 B. $1,200 C. $605 D. $455 E. None of the above

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