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Question: What was the dollar amount of interest income from T-bills as of April 30, 2021? $198,430.35 $145,676.25 $271,220.49

Question: What was the dollar amount of interest income from T-bills as of April 30, 2021? $198,430.35 $145,676.25 $271,220.49

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed fund in the fed funds market to cover the shortfall in reserves for the remainder of the month (29 days, from 4/2 to 4/30). The required yield on a discount basis was 1.5%. On April 30, 2020, Key Bank finally received the first required payments from its mortgages, loan, and T-bills, and it also paid off its fed funds loan. Key Bank was required to establish a loan loss reserve at 0.5% of the commercial loan value and the bank was in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities. The following accounting entries record these cash flow transactions. Accounting entries for mortgages and loan. Cash Accounting entries for T-bills. Cash Accounting entries for fed funds loan. Fed funds borrowed Interest expense $198.430.35 O $145,676.25 O $271,220.49 Debit O $259,476.45 Debit Debit $3,750,000.00 $4,536.73 Question: What was the dollar amount of interest income from T-bills as of April 30, 2021? Interest income from mortgages Reduction in mortgage loan balance Interest income from commercial loan T-bills Interest income from T-bills Cash Credit Credit $60,000,000.00 Credit $3,754,536.73
Transcribed Image Text:On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed fund in the fed funds market to cover the shortfall in reserves for the remainder of the month (29 days, from 4/2 to 4/30). The required yield on a discount basis was 1.5%. On April 30, 2020, Key Bank finally received the first required payments from its mortgages, loan, and T-bills, and it also paid off its fed funds loan. Key Bank was required to establish a loan loss reserve at 0.5% of the commercial loan value and the bank was in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities. The following accounting entries record these cash flow transactions. Accounting entries for mortgages and loan. Cash Accounting entries for T-bills. Cash Accounting entries for fed funds loan. Fed funds borrowed Interest expense $198.430.35 O $145,676.25 O $271,220.49 Debit O $259,476.45 Debit Debit $3,750,000.00 $4,536.73 Question: What was the dollar amount of interest income from T-bills as of April 30, 2021? Interest income from mortgages Reduction in mortgage loan balance Interest income from commercial loan T-bills Interest income from T-bills Cash Credit Credit $60,000,000.00 Credit $3,754,536.73
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