You know the following information about the Miller State Bank: $\begin{array} { l r }
\text { Gross loans } & \$ 300 \
\text { Miscellaneous assets } & 50 \
\text { Deposits } & 390 \
\text { Total equity } & 50 \
\text { Common stock par } & 5 \
\text { Non-deposit borrowings } & 60 \
\text { Investment securities } & 150 \
\text { Net premises } & 40 \
\text { Surplus } & 5 \
\text { Allowance for loan losses } & 50 \
\text { Total assets } & 500 \
\text { Gross premises } & 70
\end{array}$
Given this information,what is the value of this firm's depreciation?

Question

You know the following information about the Miller State Bank: $\begin{array} { l r } 
\text { Gross loans } & \$ 300 \
\text { Miscellaneous assets } & 50 \
\text { Deposits } & 390 \
\text { Total equity } & 50 \
\text { Common stock par } & 5 \
\text { Non-deposit borrowings } & 60 \
\text { Investment securities } & 150 \
\text { Net premises } & 40 \
\text { Surplus } & 5 \
\text { Allowance for loan losses } & 50 \
\text { Total assets } & 500 \
\text { Gross premises } & 70
\end{array}$
Given this information,what is the value of this firm's depreciation?

Quizplus · Accepted Answer

The value of the firm's depreciation can be calculated by subtracting the net premises from the gross premises. Given that the gross premises are $70 and the net premises are $40, the depreciation is $70 - $40 = $30.

You Know the Following Information About the Miller State Bank