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EleoNora [17]
3 years ago
8

CHRISTIE IS THINKING ABOUT GETTING A TERM LIFE insurance policy. She currently makes $75,000 a year. Her husband, Chip, is a sta

y at home dad. He takes care of their 6 year child who has autism. Based on a conversation Christie had with her dad, she estimates that she'll need $750,000 in life insurance. What method did Christie most likely use to calculate her life insurance needs
Business
1 answer:
garri49 [273]3 years ago
5 0

Answer: c. Complex Needs Analysis

Explanation:

The Complex needs analysis method is the most probable assessment method used by Christie on account of her dependents. Christie has a child who has Autism which means that she has to factor in the various costs associated with with managing the condition as the child grows.

These are complex needs which is why the complex needs approach is best. The other approaches do not take into account (at least not adequately), the needs of the child so aren't the best fit.

You might be interested in
On December 31, 2020, Pronghorn Inc. has a machine with a book value of $1,372,400. The original cost and related accumulated de
MaRussiya [10]

Question: I was unable to find the complete question on the google search, however I find a question that was similar to the question you pasted. So I will prefer to solve the following question:

On December 31, 2017, Travis Tritt Inc. has a machine with a book value of $940,000. The original cost and related accumulated depreciation at this date are as follows.

Machine                                         $1,300,000

Less: Accumulated depreciation <u>  360,000   </u>

Book value                            $940,000

Depreciation is computed at $60,000 per year on a straight-line basis.

Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.

A) A fire completely destroys the machine on August 31, 2018. An insurance settlement of $430,000 was received for this casualty. Assume the settlement was received immediately.

b) On April 1, 2018, Tritt sold the machine for $1,040,000 to Dwight Yoakam Company.

(c) On July 31, 2018, the company donated this machine to the Mountain King City Council. The fair market value of the machine at the time of the donation was estimated to be $1,100,000.

Answer:  

Case A

In this case the machine was destroyed by fire. Fortunately, it was insured and as a result we received an amount of $430,000. This is the recoverable amount. Now we will treat this accident as a disposal and calculate the loss on the disposal of the asset.

Step 1 Remove all the accumulated depreciation associated with the Machine

Dr Accumulated Depreciation  $360,000

Step 2 Remove the value of the Asset by cost from the Machine account

Cr   Machine (cost)         $1300,000

Step 3 Calculate the Depreciation for the 8 months

$60,000 is calculated for one year and is given in the question.

For 8 months:

Depreciation for 8 months = $60,000 * 8/12 = $40,000

Dr Depreciation Expense  $40,000

Step 4 Record the insurance received as cash received due to asset destruction.

Dr Cash Received   $430,000

Step 5 Calculate the loss or profit on the destruction

(Profit) / Loss = $1300,000 Cost - $360,000 Accumulated Depreciation - Cash Received $430,000 - $40,000 Depreciation for 8 months = $470,000

We have a loss of $470,000 and we should record it by:

Dr Loss on Disposal  $470,000

Summary

Dr Loss on Disposal                $470,000

Dr Depreciation Expense         $40,000

Dr Cash Received                     $430,000

Dr Accumulated Depreciation  $360,000

Cr               Machine (cost)                            $1300,000

Case 2

In this case the asset is been sold for $1040,000 in the start of April,2018 which means it is sold after 3 months.

The first two steps are same.

Step 1 Remove all the accumulated depreciation associated with the Machine

Dr Accumulated Depreciation  $360,000

Step 2 Remove the value of the Asset by cost from the Machine account

Cr   Machine (cost)         $1300,000

Step 3 Calculate the Depreciation for the 3 months

For 3 months:

Depreciation for 3 months = $60,000 * 3/12 = $15,000

Dr Depreciation Expense  $15,000

Step 4 Record the cash received due to asset disposal.

Dr Cash Received   $1,040,000

Step 5 Calculate the loss or profit on the destruction

(Profit) / Loss = $1300,000 Cost - $360,000 Accumulated Depreciation - Cash Received $1,040,000 - $15,000 Depreciation for 3 months = ($115,000)

We have a Profit of $115,000 and we should record it by:

Cr Profit on Disposal  $115,000

Case C

In this case, the asset is donated at the start of July, 2018. This asset will be treated the same way but their is exception that it will be revalued to the fair value of the asset and thereafter will treated as disposal for making donations. This fair value will be treated as Donation Expense and will be debited.

Revaluation of the asset:

The asset will be revalued to $1,100,000 from its carrying value. Its carrying value is $940,000 and the excessive amount will be 160,000 which will be adjusted against accumulated depreciation.

Dr Accumulated depreciation $160,000

Cr Revaluation reserve                        $160,000

Now we will treat the asset as disposal and will remove the revaluation reserve according to IAS 16 Property, Plant and Equipment. The adjustment will go to Retained earnings:

Dr Revaluation reserve   $160,000

Cr Retained Earnings               $160,000

Now we will treat the asset as disposal made against Donation:

Step 1 Remove all the accumulated depreciation associated with the Machine by $200,000 (360,000-160,000).

Dr Accumulated Depreciation  $200,000

Step 2 Remove the value of the Asset by cost from the Machine account

Cr   Machine (cost)         $1300,000

Step 3 Calculate the Depreciation for the 6 months

For 6 months:

Depreciation for 6 months = $60,000 * 6/12 = $30,000

Dr Depreciation Expense  $30,000

Step 4 There is no cash receipt because of the asset donation.

Step 5 Calculate the loss or profit on the destruction

(Profit) / Loss = $1300,000 Cost - $200,000 Accumulated Depreciation - Cash Received $0 - $30,000 Depreciation for 6 months = $1,070,000

We have made a donation of $1,070,000 and we should record it as expense:

Dr Donation Expense  $1,070,000

3 0
3 years ago
E15-2 (Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2014. It is
Mekhanik [1.2K]

Answer:

Explanation:

Jan 10 Issue of common stock for cash

Dr Cash 400,000 [80,000*5]

    Cr Common stock 80,000 [80,000*1]

    Cr Additional paid in capital - Common Stock [80,000*4] 320,000

Mar 1 Issue of preferred stock foor cash

Dr Cash 540,000 [5000*108]

     Cr Preferred stock [5000*1000] 500,000

     Cr Additional Paid in capital - Preferred stock 40,000

Apr 1 Issue of common stock for land

Dr Land 80,000

   Cr Common stock 24,000

   Cr Additional paid in capital - Common stock 56,000

May 1 Issue of common stock for cash

Dr Cash [80,000*7] 560,000

   Cr Common stock [80,000*1] 80,000

   Cr Additional paid in capital - Common stock 480,000

Aug 1

Dr Attorney 50,000

   Cr Common stock [1*10,000] 10,000

   Cr Additional paid in capital - Common stock 40,000

Sep 1  Issue of common stock for cash

Dr Cash [10,000*9] 90,000

   Cr Common stock [10,000*1] 10,000

   Cr Additional paid in capital - Common stock 80,000

Nov 1  Issue of preferred stock foor cash

Dr Cash 112,000 [1000*112]

     Cr Preferred stock [1000*100] 100,000

     Cr Additional Paid in capital - Preferred stock 12,000

4 0
3 years ago
Poornima is a 31-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently
Rudiy27

Answer:

<em><u>Options Include:</u></em>

Is he/she employed,

<em>unemployed is Correct</em>

"not in the labor force", or

"not in the adult population"

Explanation:

Poornima is unemployed, since she has stopped working as a basketball player and seeking a job as a coach.

The Bureau of Labor Statistics describes unemployment as individuals who don't have an employment, have actively sought work in the last four weeks, and are actually available for work.

7 0
3 years ago
1. (30 points) Please elaborate what will happen to Net Earnings to Sales and Net Earnings to Total Book Assets when you observe
marta [7]

Answer:

Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:

a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales.  This result will be different with an increase by a similar margin in the Cost of Goods Sold.

b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.

Explanation:

The net earnings to sales is an expression of the ratio of the net income to the sales revenue.  The net earnings result after deducting all costs from sales revenue.  The net earnings to total book assets are the same expression as the Return on Assets.

6 0
3 years ago
If consumption increases, a) the SRAS curve will shift rightward, which will push the price level up. b) the SRAS curve will shi
SSSSS [86.1K]

Answer: Option (d) is correct

If consumption increases, the AD curve will shift rightward, which will increase the price level.

Explanation:

If the consumption increases in an economy as a result there is a rightward shift in the aggregate demand curve. This shift in the aggregate demand curve lead to increase in the price level as well as in the output level.

Because there is more demand in the economy which gives an advantage for the producer to charge higher price.

3 0
3 years ago
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