Flora company owed $95,000, a debt incurred to purchase land that serves as security for the debt. if flora had borrowed the funds from a bank, the bank accepts $85,000 in full payment of the debt, and flora is solvent after the transfer, flora does not recognize income, but the company must reduce the cost of the land by $10,000. if flora had borrowed the funds from a bank, and the bank accepts $85,000 in full payment of the debt, when the value of the property is $80,000, flora can deduct a loss. if flora transfers to the bank other property, with a basis of $90,000 and a fair market value of $95,000, in full payment of the debt, flora can recognize a $5,000 loss. if the $95,000 is owed to the person who sold the property to flora, and the creditor accepts $85,000 in full payment for the debt, flora does not recognize gain but must reduce its basis in the land. none of these.

Your uncle borrows $53,000 from the bank at 11 percent interest over the nine-year life of the loan. use appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods. what equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest

Susan is a 5th grade teacher and loves getting up every day and going to work to teach her students. this is an example of a. extrinsic value b. interests c. intrinsic value d. external value

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.