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serg [7]
3 years ago
11

In the state where Susan lives, drivers whom private insurance companies do not want to insure are placed in a common pool, and

each insurer pays its pro rata share of pool losses and expenses. A common policy is used for all high-risk drivers. Susan's state handles high-risk drivers through a(n)
Business
1 answer:
deff fn [24]3 years ago
3 0

Answer: Joint Underwriting Association

Explanation: An association which affords licensed drivers the opportunity to come together and provide coverage or compensation for vehicle owners or insurers is the Joint Underwriting Association. Members of the association are usually composed of drivers who have been unable to obtain insurance the regular or private insurance companies usually due to the risk exposure level of the driver's or car owners. The joint Underwriting Association requires that members pay shares fees and share of pool losses. However, they are usually more affordable than the standard insurance coverage offered by most private insurance companies and thus provides an insurance lifeline to high risk drivers.

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Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued $65,000,000 of 10-year, 12% bonds a
Stolb23 [73]

Answer:

Rodgers Corporation

Journal Entries:

1.  July 1, Year 1:

Debit Cash $73,100,469

Credit Bonds Payable $65,000,000

Credit Bonds Premium $8,100,469

To record the issuance of bonds at a premium.

2. a) December 31, Year 1:

Debit Interest Expense $3,494,976.55

Debit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the first semi-annual interest payment, including amortization.

b) June 30, Year 2:

Debit Interest Expense $3,494,976.55

Credit Amortization $405,023.45

Credit Cash $3,900,000.00

To record the second semi-annual interest payment, including amortization.

3. The total interest expense for Year 1 is $3,494,976.55

4. Yes.  The bonds are issued at a premium.  So the bond proceeds will always be greater than the face amount, and the contract rate (coupon rate) will always be greater than the market (effective) rate.

5. The price of $73,100,469 received for the bonds by using the present value tables is $1,124.62 ($73,100,469/65,000) per $1,000.

Explanation:

a) Data and Calculations:

Face value of bonds issued = $65,000,000

Price received from the issue  $73,100,469

Premium received =                   $8,100,469

Period of maturity = 10 years

Coupon interest rate = 12%

Market (effective) interest rate = 10%

Payment of interest = semiannually on December 31 and June 30

Analysis of Journal Entries:

1.  July 1, Year 1:

Cash $73,100,469 Bonds Payable $65,000,000 Bonds Premium $8,100,469

2. a) December 31, Year 1:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

b) June 30, Year 2:

Interest Expense $3,494,976.55 Amortization $405,023.45 Cash $3,900,000.00

N (# of periods)  20

I/Y (Interest per year)  10

PMT (Periodic Payment)  3900000

FV (Future Value)  65000000

Results

PV = $73,100,439

Sum of all periodic payments = $78,000,000.00

Total Interest $69,899,569

8 0
3 years ago
What are capital gains on an investment.
Vlad1618 [11]

Answer:

A capital gain is, to put it simply, a rise in the value of an investment over its initial purchase price, such as stocks, mutual fund shares, or shares of an exchange traded fund. You have a capital gain if the asset's value rises, and you must pay tax on it

Hope this helped!

3 0
1 year ago
Concord Corporation has several outdated computers that cost a total of $18000 and could be sold as scrap for $6000. They could
DanielleElmas [232]

Answer:

$18,000

Explanation:

Sunk costs refers to a cost that has been expended and cannot be recovered or recouped.

With regards to the above, $18,000 was expended concord by corporations to purchase computers hence cannot be recovered. Therefore, it is a sunk cost.

8 0
3 years ago
The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock, a savings account, and help w
max2010maxim [7]

Answer:

A. Education, savings, and human capital, respectively.

8 0
3 years ago
A car dealer who sells only late-model luxury cars recently hired a new salesman and believes that this salesman is selling at l
Natasha2012 [34]

Answer:

t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3      

Explanation:

Data given and notation      

\bar X=5000 represent the sample mean      

s=800 represent the standard deviation for the sample      

n=16 sample size      

\mu_o =5600 represent the value that we want to test    

\alpha represent the significance level for the hypothesis test.    

t would represent the statistic (variable of interest)      

p_v represent the p value for the test (variable of interest)  

State the null and alternative hypotheses.      

We need to conduct a hypothesis in order to determine if the mean is lower than 5600, the system of hypothesis would be:      

Null hypothesis:\mu \geq 5600      

Alternative hypothesis:\mu < 5600      

We don't know the population deviation, so for this case is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:      

t=\frac{\bar X-\mu_o}{\frac{s}{\sqrt{n}}} (1)      

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".  

Calculate the statistic      

We can replace in formula (1) the info given like this:      

t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3      

4 0
3 years ago
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