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Paraphin [41]
3 years ago
6

Eve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective that date. The liability poli

cy was $52,200 for 18 months, and the crop damage policy was $26,400 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2021
Business
1 answer:
masya89 [10]3 years ago
5 0

Answer:

$20,600

Explanation:

<u>Computation of prepaid insurance</u>

Insurance 1 ($52,200 * 6/18)              $17,400

Insurance 2 ($26,400 * 12/24)           <u>$13,200</u>

Total Prepaid Insurance                    <u>$20,600</u>

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The statement "in the cost approach to valuation, land value can be estimated by comparing sales of vacant land that are similar to the subject land" is true.

<h3>What is valuation?</h3>

Valuation is an estimation of the price of a good or a product. When a product is manufactured, its evaluation is estimated. It is estimated by seeing the manufacturing price, labor cost, and raw material cost.

Here, the valuation of vacant land and subject land is estimated, which is similar by seeing the comparison. So the statement will be correct about the comparison.

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Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages t
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