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zepelin [54]
3 years ago
13

A dwelling with a replacement cost of $150,000 was insured under a Homeowners 3 policy for $105,000 at the time the roof was des

troyed by a windstorm. The actual cash value of the loss was $10,000, but it will cost $15,000 to replace the roof. Ignoring any deductible, what will the insurer pay to settle this loss
Business
1 answer:
Mazyrski [523]3 years ago
3 0

Answer: $13125

Explanation:

The amount that the insurer will pay to settle this loss will be calculated thus:

= Insured claim × Insurance value / 80% of replacement value

= 15000 × 105,000 /80% × 150000.

= 15000 × 105,000 / 120000

= 13125

Therefore, the insurer will pay $13125

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4 0
1 year ago
The simple case of a fixed per-unit tax is indicative of more complicated ones. consider a proportional sales tax and a progress
mars1129 [50]

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8 0
3 years ago
Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
jekas [21]

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The net operating income for the month under variable costing is $500,000

Explanation:

Note : I have attached the full question as an image below

8 0
2 years ago
Match the expense revenues with expenses recognition approaches with the most appropriate accounting event.
Zigmanuir [339]

Answer:

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4 0
2 years ago
The Penn Railways has a 7-year, 6.5 percent semiannual coupon bond outstanding with a $1,000 par value. The bond has a yield to
Nuetrik [128]

Answer:

The increase in yield to maturity from 5.5% to 7% will cause the price of the bond to fall from $ 1,057.46  to $ 972.70  

Explanation:

In order to ascertain the impact on the bond of a sudden increase in the yield to maturity from 5.5% to 7%, the present value of the bond, the current price is computed using yield of maturity of 5.5% and 7% respectively.

In calculating the present value, a discounting factor is used to state today's value of the future cash flows from the bond, given as 1/(1+r)^N, where r is the yield to maturity divided by 2 , in order to show that the bond is a semi-annual  interest paying bond.The fact that the bond is a semiannual one means interest would be paid 14 times( 7 years *2)

The present value is computed in the attached.

Download xlsx
3 0
3 years ago
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