Suppose that a firm named Kathy's Tutoring owns a building worth $750,000 and furniture worth $425,000....

 

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Suppose that a firm named Kathy's Tutoring owns a building worth $750,000 and furniture worth $425,000. To open her business, Kathy borrowed $950,000 from Third Fidelity Bank. She has not paid back any of the loan; therefore, the full amount of the loan is still outstanding. Complete the following T-account for Kathy's Tutoring. Furniture Reserves Assets 678.6% 13.3% 110.5% T-Account for Kathy's Tutoring Now consider a T-account for Third Fidelity Bank. Suppose that the bank has $10,500,000 in loans, $1,400,000 in reserves, and $9,500,000 in deposits outstanding. Use this information to complete the empty boxes in the following T-account for Third Fidelity Bank. One entry has been completed for you. Assets $425,000 T-Account for Third Fidelity Bank $1,400,000 What is the reserve ratio of Third Fidelity Bank? O 14.7% Liabilities Liabilities Suppose that a firm named Kathy's Tutoring owns a building worth $750,000 and furniture worth $425,000. To open her business, Kathy borrowed $950,000 from Third Fidelity Bank. She has not paid back any of the loan; therefore, the full amount of the loan is still outstanding. Complete the following T-account for Kathy's Tutoring. Furniture Reserves Assets 678.6% 13.3% 110.5% T-Account for Kathy's Tutoring Now consider a T-account for Third Fidelity Bank. Suppose that the bank has $10,500,000 in loans, $1,400,000 in reserves, and $9,500,000 in deposits outstanding. Use this information to complete the empty boxes in the following T-account for Third Fidelity Bank. One entry has been completed for you. Assets $425,000 T-Account for Third Fidelity Bank $1,400,000 What is the reserve ratio of Third Fidelity Bank? O 14.7% Liabilities Liabilities

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Solution A Furniture Building B Reserves Loans 0147 Assets ... View the full answer