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spin [16.1K]
3 years ago
14

What is risk pooling???

Business
1 answer:
Elena L [17]3 years ago
7 0
A risk pool<span> is one of the forms of </span>risk<span> management mostly practiced by insurance companies. Under this system, insurance companies come together to form a </span>pool<span>, which can provide protection to insurance companies against catastrophic </span>risks<span> such as floods, earthquakes etc.</span>
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If consumers are willing to pay a higher price than previously for each level of output, we can say that _______ has occurred. A
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Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor recei
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Answer:

1. $163,800

2. Dr Cash $ 89,000

Dr Notes receivable $ 671,000

Cr Deferred revenue $ 760,000

3. $ 607,120

Explanation:

1. Computation of the amount that Monitor would calculate as the stand-alone selling price

Total amount of franchise agreement $760,000

Less: stand-alone selling price of training $ (18,200)

Less: stand-alone selling price of building and equip $ (578,000)

Stand-alone selling price of five-year right $163,800

2. Preparation of journal entry that Monitor would record on July 1, 2016,

Dr Cash $ 89,000

Dr Notes receivable $ 671,000

(760,000-89,000)

Cr Deferred revenue $ 760,000

3. Calculation for the amount of revenue that Monitor would recognize in the year ended December 31, 2016,

Revenue to be recognised on:

1st Sep 2021:

Training $ 18,200

Building and Equipment sale $ 578,000

31st Dec 2021:

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Total Revenue to be recognized $ 607,120

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