Macroeconomics 6th Edition by Robert Hall,Marc Lieberman

Exercise 10

Suppose a bank has the following entries on its balance sheet: $20 million in property and buildings; $200 million in government bonds; $300 million in loans; $5 million cash in vault; $95 million in accounts with the Federal Reserve; $550 million in checking account liabilities. There are no other entries on the balance sheet except for shareholders' equity.
a. What is this bank's "capital?"
b. What is the maximum value of the bank's loans that could be "written off" due to bankruptcies before the bank would become insolvent?