Correct answer: 140 J
The initial kinetic energy of the system is due to the moving 2 kg ball: KE_initial = (1/2) * 2 * (10)^2 = 100 J (converting 36 km/h to 10 m/s). After the collision, the combined mass (5 kg) moves with velocity v = (2 * 10) / (2 + 3) = 4 m/s. The final kinetic energy is KE_final = (1/2) * 5 * (4)^2 = 40 J. The loss in kinetic energy is KE_initial - KE_final = 100 - 40 = 60 J.