The Coppock Bank has $34,000,000 in deposits.If borrowings are $7,000,000,reserves are $3,500,000,and owner's equity is $2,000,000,what are the bank's total liabilities and net worth?
A) $46,500,000
B) $21,500,000
C) $24,000,000
D) $43,000,000
E) $43,500,000

Question

Quizplus · Accepted Answer

Total liabilities can be calculated by adding borrowings and deposits, which gives us $7,000,000 + $34,000,000 = $41,000,000.
Net worth can be calculated by adding reserves and owner's equity, which gives us $3,500,000 + $2,000,000 = $5,500,000.
Adding total liabilities and net worth, we get $41,000,000 + $5,500,000 = $46,500,000.
Therefore, the correct answer is option D.

The Coppock Bank Has $34,000,000 in Deposits