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VikaD [51]
3 years ago
6

The insured owns an older home with lath and plaster walls. Following a kitchen fire, the insurance company pays to have the wal

l replaced with drywall that is just as functional, but costs less than lath and plaster. Which loss valuation allows the insurance company to have plaster replaced with drywall?
Business
2 answers:
Umnica [9.8K]3 years ago
4 0

Answer:

Answer is Functional Replacement Cost.

Refer below.

Explanation:

Functional Replacement Cost — the cost of procuring another thing of property that will play out a similar capacity with equivalent productivity, regardless of whether it isn't indistinguishable from the property being supplanted.

Stolb23 [73]3 years ago
3 0

Answer:

Functional Replacement Cost.

Explanation: Functional Replacement Cost is the cost of acquiring another equipments which has the capacity of performing the same functions as the one being replaced. In this case,the equipment acquired may not be similar to the one which it is aimed at replacing.

Functional replacement policy is a policy or product of Insurance companies which helps subscribers to be able to replace such items which may have been destroyed by fire or other accidents.

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A company had net income of $210600. Depreciation expense is $27000. During the year, Accounts Receivable and Inventory increase
ANTONII [103]

Answer: The amount of cash provided by operating activities is $179,600.

Explanation:

<u>Statement of cash flows for the company</u>

Net income                                                            $210,600

Add Depreciation expense                                      27,000

Add Loss on sale of equipment                                  1,800

Increase in Accounts receivable                             (16,900)  

Increase in Inventory                                                (41,700)

Decrease in Prepaid expenses                                   5,000

Decrease in Accounts payable                                  (6,200)

Cash flows fron operating activities                   $179,600

7 0
3 years ago
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000.
olchik [2.2K]

Answer:

The answer is: Equity at the end of the year will be $123,000

Explanation:

At the beginning of the year the balance sheet was as following:

assets $195,000                   liabilities $75,000

                                              equity $ 120,000

Then during the year the income statement is:

  • total revenues $226,000
  • <u>total expenses $175,000  </u>
  • net income       $ 51,000 (this increases assets and equity)

If the owners withdrew $48,000, then cash and equity will decrease.

The ending balance for the year:

assets $195,000 + $51,000          liabilities $75,000

           -$48,000 =                         equity $120,000 + $51,000 - $48,000 =

           $198,000                                       $123,000

5 0
3 years ago
Please help!!! due tmrw!!!
Aleonysh [2.5K]
Yeah the game company would lower the price of the game.
8 0
3 years ago
Your unemployed friend Seymour sent you a test of his electronic cover letter. You see that he is struggling with the appropriat
Ugo [173]

tell him to put less information with more details.

Instead of putting large amounts of small information in a cover letter, he should be putting small amounts of information with smaller details, a cover letter is explaining you and your backround better to the employers to see if you're what they want, and to get to know your backround better. If Seymour puts his little important details of information he will have a better chance at impressing the employers.

4 0
3 years ago
Read 2 more answers
Crestfield leases office space. On January 3, the company incurs $23,000 to improve the leased office space. These improvements
Lisa [10]

Answer:

Amortization expense $11,500

   To Accumulated Amortization- Leasehold improvements $11,500

(Being the expenses for the first year is recorded)

Explanation:

The journal entry is as follows

Amortization expense $11,500

   To Accumulated Amortization- Leasehold improvements $11,500

(Being the expenses for the first year is recorded)

The computation is shown below:

= Incurred expenses ÷ remaining life

= $23,000 ÷ 2

= $11,500

While recording this transaction we debited the amortization expense as the expenses account is increased while at the same time the accumulated amortization should be credited as it decreased the value of the asset

5 0
3 years ago
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