Last year Stealth Bank received $100 million in interest payments from borrowers. $25 million in loans were written off as uncollectible. It paid out $30 million in interest to its depositors and collected $25 million for various fees it charged. Administration costs were $22 million and taxes were $3 million. What was the value of Stealth Bank's accounting profits?

Question

Barley

Business

14 June, 11:01

Last year Stealth Bank received $100 million in interest payments from borrowers. $25 million in loans were written off as uncollectible. It paid out $30 million in interest to its depositors and collected $25 million for various fees it charged. Administration costs were $22 million and taxes were $3 million. What was the value of Stealth Bank's accounting profits?

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Answers (1)

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Ronnie · Answer 1

Accounting profit: 45,000,000

Explanation:

The accounting profit will bethe result of subtacting the expenses of the period from the revenues ofhte period.

interest revenues 100 millions

service charges 25 millions

write off (25) millions

interest paid (30) millions

admin cost (22) millions

taxes (3) millions

accounting profit: 45 millions