How loan loss reserve was established for loan recorded

Assignment Help Finance Basics
Reference no: EM131128255

After making payments for three years, one of the mortgage borrowers defaults on the mortgage. NewBank immediately takes possession of the house and sells it at auction for $175,000. Legal fees amount to $25,000. If no loan loss reserve was established for the mortgage loans, how is this event recorded?

Reference no: EM131128255

Questions Cloud

Paid in capital from sale of treasury stock : Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet. Sixty thousand shares of common stock are authorized, and 4,000 shares have been reacquired.
Why does imposing bank capital requirements on banks : Why does imposing bank capital requirements on banks help limit risk taking?
What special problem do off balance sheet activities present : What special problem do off-balance-sheet activities present to bank regulators, and what have they done about it?
What are the costs and benefits of a too big to fail policy : What are the costs and benefits of a too-big-to-fail policy?
How loan loss reserve was established for loan recorded : After making payments for three years, one of the mortgage borrowers defaults on the mortgage. NewBank immediately takes possession of the house and sells it at auction for $175,000. Legal fees amount to $25,000. If no loan loss reserve was establish..
How much net fee income must it generate to meet this target : If NewBank’s target ROE is 4.5%, how much net fee income must it generate to meet this target?
Recalculate final balance sheet including its tax liability : f NewBank were required to establish a loan loss reserve at 0.25% of the loan value for commercial loans, how would this be recorded? Recalculate NewBank’s ROE and final balance sheet, including its tax liabilities.
Calculate newbank roe and final balance sheet : Calculate NewBank’s ROE and final balance sheet, including its tax liabilities.
Calculate newbank roa and nim for its first month : Calculate NewBank’s ROA and NIM for its first month. Assume that net interest equals EBT, and that NewBank is in the 34% tax bracket.

Reviews

Write a Review

Finance Basics Questions & Answers

  Delhoyo corporation a manufacturing company has provided

delhoyo corporation a manufacturing company has provided data concerning its operations for september. the beginning

  What is the lease worth today

What is the lease worth Today? As one of J & B's analysts, what is your recommendation as to when the company should begin drilling?

  What is the current value of one share of this stock

The company just paid its annual dividend in the amount of $1.50 per share. What is the current value of one share of this stock if the required rate of return is 7.00 percent?

  Barrett industries invests a large sum of money in rampd as

barrett industries invests a large sum of money in rampd as a result it retains and reinvests all of its earnings. in

  Basic option strategies

Which of the following statements is most correct regarding the writing of covered calls?

  Make journal entries without explanations

Tobias Company has 40,000 shares of $10 par value common stock outstanding. Make journal entries without explanations for the following transactions.

  Financial planning and agency conflicts

Financial Planning and Agency Conflicts

  Ow do you think stock prices will change on dividend payment

In an efficient market, ignoring taxes and transaction costs, how do you think stock prices will change on dividend payment dates?

  Define and compare the following theories expectations

you are a financial analyst for the cmc corporation. this corporation predicts changes in the economy such as interest

  Problem regarding isolation or incremental basis

a) Calculate the relevant cash flows either on an isolation or incremental basis. b) Calculate the NPV and IRR of the project and advise whether the company should replace the manual machine.

  Assessment of the competitive strength

Using your text book, the AUO library and the Internet, research PepsiCo. What is your assessment of the competitive strength of PepsiCo's different business units?

  What was the fund turnover

A mutual fund sold $36 million of assets during the year and purchased $32 million in assets. If the average daily assets of the fund were $96 million, what was the fund turnover?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd