On February 1, 2020, Bonita Industries purchased a parcel of land as a factory site for $328000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19800 Architect's fees 36400 Legal fees for title investigation and purchase contract 4600 Construction costs 1378000 (Salvaged materials resulting from demolition were sold for $10200.) Bonita should record the cost of the land and new building, respectively, as:
a. $342200 and $1414400.
b. $352400 and $1404200.
c. $337600 and $1419000.
d. $337600 and $1414400.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.