Reliable corp. had a pretax accounting income of $30 million this year. this included the collection of $40 million of life insurance proceeds when several key executives died in a plane crash. temporary differences for the current year netted out to zero. reliable has had a 40% tax rate and taxable income of $120 million over the previous two years and plans to elect a net operating loss carryback for tax purposes. in the current year financial statements, reliable would report:

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances