1. Given the following information on the revenue and expense of First National
ID: 2668274 • Letter: 1
Question
1. Given the following information on the revenue and expense of First National Bank, determine the bank's net income after taxes for the year just concluded:Salaries of employees’ benefits, $ 80,000
Interest of deposit, $170,000
Interest on loans, $320,000
Income from US treasury securities $75,000
Extraordinary items, net 0
Interest on non-deposit borrowings $30,000
Net securities gains 0
Applicable income taxes $ 50,000
Occupational cost $ 11,000
Provisions for loan losses $ 22.000
Miscellaneous expenses $ 8,000
Interest on municipal securities $86,000
Service charges on deposits $10,000
Miscellaneous is operating revenues $13,000
Explanation / Answer
Revenues: Interest on loans 320,000 Income from Treasuries 75,000 Interest on Munies 86,000 Service charges on deposits 10,000 Misc revenues 13,000 Total Revenues 504,000 Expenses: Salaries 80,000 Interest on deposits 170,000 Interest on n/d borrowings 30,000 Occupational cost 11,000 (whatever that is, rent?) Provision for loan losses 22,000 Misc expenses 8,000 Total expenses 321,000 Income before taxes 183,000 Income taxes 50,000 Net income after taxes 133,000
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