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Mariana [72]
3 years ago
11

Mike says, "The possibility that my house may burn isa pure risk for me, but if I buy insurance, it is a speculativerisk for the

insurance company." Do you agree? Why or
Business
1 answer:
PilotLPTM [1.2K]3 years ago
3 0

Answer:

I agree with Mike because pure risks involve only possible losses. Since he owns his house, the possibility of it burning down would represent only a loss to him.

But if he buys insurance, he will pay an insurance premium which means that if the house burns down, the company will lose money, but if the hose doesn't burn down, the insurance company will make a profit. This represents speculative risk because the possibility of a gain and a loss exist.

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A new truck is purchased on January 1, 20X6. The truck cost $10,000, has a 5-year life, and a $2,000 residual value. Given a Dec
Elena-2011 [213]

Answer:

20X9 depreciation expense is $160

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20%.

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

In 20X6, depreciation expense = 40% x $10,000 = $4,000

At the beginning of the year 20X7, the truck cost's book value is $10,000-$4,000 = $6,000

In 20X7, depreciation expense = 40% x $6,000 = $2,400

In 20X8, depreciation expense = 40% x ($10,000 - $4,000 - $2,400) = $1,440

Accumulated depreciation at December 31 20X8 = $4,000 + $2,400 + $1,440 = $7,840

Book value at December 31 20X8 = $10,000 - $4,000 - $2,400 - $1,440 = $2,160

In 20X9, depreciation expense = $10,000 - $2,000 - $7,840 = $160

The 20X9 depreciation expense was $160 which is less than the actual $864 (40% of $2,160). It was done to keep the residual value as estimated ($2,000)

4 0
3 years ago
Karim and Rashida Sultan are filing a joint federal return. They have the following investment income: Wells Fargo Bank CD, $720
WINSTONCH [101]

Karim and Rashida Sultan are filing a joint federal return. They have the following investment income $597 Frankfort Mutual Fund dividends, $283 Credit Union dividends. The amount of total taxable dividends reported on Schedule B is: $1,706.

Total taxable dividend=Craft Inc. dividends + Frankfort Mutual Fund dividends+ Credit Union dividends

Where:

Craft Inc. dividends=$826

Frankfort Mutual Fund dividends=$597

Credit Union dividends=$283

Let plug in the formula

Total taxable dividend= $826+$597+$283

Total taxable dividend=$1,706

Inconclusion if Karim and Rashida Sultan are filing a joint federal return. They have the following investment income $597 Frankfort Mutual Fund dividends, $283 Credit Union dividends. The amount of total taxable dividends reported on Schedule B is: $1,706.

Learn more here:

brainly.com/question/20345678

3 0
2 years ago
Tom sells his father's watch for $100 to sue. he later finds out from his father that the watch was an expensive rolex. tom want
Daniel [21]

The court would rule in sue's favor because courts seldom inquire into the adequacy of consideration.

In contracts, <em>consideration </em>just means the <em>exchange of things of value</em>. There has to be an exchange of things of value for there to be an enforceable contract, and in this case a watch was exchanged for money. It is rare for courts to rule on how much consideration is expected because people are generally free to set their own prices and not sell if the price is too low. That is not for a court to decide (in most cases).

8 0
2 years ago
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin
const2013 [10]

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. Compute the predetermined overhead rate to be used in each department.

Given

Cutting Department

The Cutting Department bases its rate on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

The Finishing Department bases its rate on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department bases its rate on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ Calculated

The Finishing Department bases its rate on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% labour cost ------ Calculated

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If they use a plantwide rate based on direct labor cost and if the jobs has longer machine hours and small amount of labor cost they will be charged less overhead cost.

6 0
3 years ago
Why is it important for engineers to have good communication skills?
Orlov [11]
To be able to fix the thing that are broken and to communicate with each other
4 0
3 years ago
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