The following table shows the assets and liabilities for Safeco Bank.

-Refer to the table above.Assuming that Safeco Bank loses 30 percent of its long-term investments,what is Safeco Bank's Stockholders' equity now?

Question

The following table shows the assets and liabilities for Safeco Bank.
 
-Refer to the table above.Assuming that Safeco Bank loses 30 percent of its long-term investments,what is Safeco Bank's Stockholders' equity now?

Quizplus · Accepted Answer

If Safeco Bank loses 30% of its long-term investments, it significantly impacts its assets. If this loss is substantial enough to wipe out the bank's equity, the stockholders' equity could be reduced to $0, leading to the bank's closure.

The Following Table Shows the Assets and Liabilities for Safeco