On January 1, 20X1, Maroon Company paid $710,000 to acquire all of Gold Company's common stock. The $166,000 excess paid above Gold's book value was attributed to a building with a 20-year life whose book value was $103,000 below its market value and to unrecorded in process R & D whose market value was $63,000 with a 6-year life. As of December 31, 20X3, Gold reported its year-end values as follows: Revenues $200,000 Expenses $160,000 Dividends declared $ 10,000 Part 1 For the year ended 20X3: A. Determine the year-end value of Maroon's Equity Income account. B. Determine the year-end consolidated value of in process R&D. C. Determine the 20x3 consolidation adjustment (entry A) for the building. Part 2 In preparation for the consolidated financial statements, prepare worksheet entries: D A E. I F. E G. P

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.