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Usimov [2.4K]
2 years ago
15

Maria is the risk manager for a large organization and is evaluating whether the organization should purchase a fire suppression

system. She consulted several subject matter experts and determined that there is a 1 percent chance that a fire will occur in a given year. If a fire occurred, it would likely cause $2 million in damage to the facility, which has a $10 million value. If the exposure factor (EF) for a $10 million facility is 20 percent, what is the single loss expectancy (SLE)?
Business
1 answer:
docker41 [41]2 years ago
3 0

The single loss expectancy for the risk management will be $2,000,000 as it is the expected and maximum probable loss that will occur as a result of the peril.

<h3>What is a single loss expectancy?</h3>

In Insurance, a term "single loss expectancy" refers to monetary value that is expected from the occurrence of a risk on the asset insured.

Here, the maximum of $2 million in damage is excepted to occur to the facility if a fire occurs.

In conclusion, the single loss expectancy for the risk management will be $2,000,000 as it is the expected and maximum probable loss that will occur as a result of the peril.

Read more about single loss expectancy

<em>brainly.com/question/6658563</em>

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T. Dole invests cash and land into an existing partnership. The cash invested is $30,000 and the land has a fair market value of
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The journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $90,000.

<h3>What journal entries?</h3>
  • A journal entry is an act of keeping or producing records of any economic or non-economic transaction.
  • An accounting journal, which shows a company's debit and credit balances, records transactions.
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So, the journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of cash invested, and the fair market value.

30,000 + 60,000 = $90,000

Therefore, the journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $90,000.

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The complete question:

T. Dole invests cash and land into an existing partnership. The cash invested is $30,000 and the land has a fair market value of $60,000. The journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $ ______.

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