ICW #3

On a rainy afternoon two years ago, John Smiley left work early to attend a family birthday party. Eleven minutes later, a careening truck slammed into his SUV on the freeway causing John to spend two months in a coma. Now he can’t hold a job or make everyday decisions and is in need of constant care. Last week, the 40-year-old Smiley won an out-of-court settlement from the truck driver’s company. He was awarded payment for all medical costs and attorney fees, plus a lump-sum settlement of $2,330,716. At the time of the accident, John was president of his family’s business and earned approximately $200,000 per year. He had anticipated working 25 more years before retirement. 10 John’s sister, an acquaintance of yours from college, has asked you to explain to her how the attorneys came up with the settlement amount. “They said it was based on his lost future income and a 7% rate of some kind,” she explained. “But it was all ‘legal-speak’ to me.” Required: How was the amount of the…

LO.2 Alfred owned a term life insurance policy at the time he was diagnosed with a terminal illness. After paying $18,300 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $125,000. When Alfred died 18 months later, the company collected the face amount of the policy, $150,000. As a result of the sale of the policy, how much is Alfred required to include in his gross income?

Kurt has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. The damage to the parked car was $10,700, and the damage to the store was $18,500. What amount will the insurance company pay for the damage?   What amount will Kurt have to pay?

Kurt has 50/100/15 auto insurance coverage. One evening he lost control of his vehicle hitting a parked car and damaging a store front along the street. Damage to the parked car was 5,400 and damage to the store was 12,650. What amount will the insurance company pay for the damages? What amount will Kurt have to pay?

Interview Notes • Thomas is age 40 and was widowed in 2019. He has a daughter, Christina, age 6. • Thomas provided the entire cost of maintaining the household and over half of the support for Christina. In order to work, he pays childcare expenses to Downtown Daycare. • Thomas purchased health insurance for himself and his daughter through the Marketplace. He received a Form 1095-A. • Thomas and Christina are U.S. citizens and lived in the United States all year in 2022   a. Thomas's adjusted gross income on his Form 1040 is $__________. b. Thomas's Retirement Savings Contributions Credit on Form 8880 is $___________.

36. LO.3, 4, 8 Olaf lives in the state of Minnesota. In May 2022, a tornado hit the area and damaged his home and automobile. Applicable information is as follows: Item Home Auto Adjusted Basis $350,000 60,000 FMV before $500,000 40,000 FMV after $100,000 10,000 Insurance Proceeds $280,000 20,000 Because of the extensive damage caused by the tornado, the President designated the area a Federal disaster area. Olaf and his wife, Anna, always file a joint return. Their 2021 tax return shows AGI of $180,000 and taxable income of $145,000. In 2022, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $245,000. Determine the amount of Olaf and Anna's loss and the year in which they should take the loss.

Bill Converse of Rexburg, Idaho, recently had his truck slide off a gravel road and strike a tree. Bill's vehicle suffered $18,000 in damage. The truck has a book value of $38,000. Bill carried collision insurance with a $400 deductible. How much will Bill be reimbursed by his policy? Round your answer to the nearest dollar. $

Kurt has 25/50/10 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $13,000, and damage to the store was $7,500. (a) What amount will the insurance company pay for the damages? Amount paid (b) What amount will Kurt have to pay? Amount paid

Question #74 of 85 John, 84, has developed Alzheimer's and can no longer care for himself. Prior to becoming incapacitated, John executed a will and a medical power of attorney. John's daughter comes to you, his financial planner, and inquires as to whether she can manage his finances for him, since she is named as the executor of the will and the agent under the medical power of attorney. Which one of the following statements would be a correct response to her inquiry?     A) John's daughter may not manage his financial affairs unless she is appointed by the court as his conservator.     B) John's daughter may not manage his financial affairs unless she is appointed by the court as his custodian.     C) John's daughter may manage his financial affairs because she is appointed as executor of the will and as the agent under the medical power of attorney.     D) John's daughter may manage his financial affairs because that was his express intent in a conversation you had with…

Fifteen years ago Sam, a life insurance agent, sold his good friend Tanya a twenty year term life insurance policy in which she was both the policy holder and the life insured. Tanya designated her best friend Julia as beneficiary. Tanya died, and the insurance company received notice of her death from her executor. Given this scenario, what was the next step in this process? Select onet a. Julia had to contact the insurer to requesta claim form b. Sam contacted the insurer to request the notice of death c. The insurer contacted Sam to help Julia complete the claim form d. The insurer notified Julia so that she could complete the claim form

Help me fast with detail explanation.

Becky Fenton has 75/150/85 automobile insurance coverage. If two other people are awarded $120,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover? Insurance payment