25. Sid King has automobile liability insurance in the amount of 50/100/50. He also carries $250 deductible collision and full comprehensive coverage. Recently, he was at fault in an accident in which his car went out of control in the rain and struck four pedestrians. In an out-of-court settlement, they were awarded the following: Goya, $45,000; Truman, $68,000; Copeland, $16,000; and Kelly, $11,000. Damage to Sid's car amounted to $3,900. How much will the insurance company pay and to whom? $103,650 What part of the settlement will be Sid's responsibility? $40,250 How crashes affect auto premiums Average annual auto insurance premiums rise with each at-fault traffic accident: No accidents $1,387 One $1,689 Two $2,041 Three $2,348 Four $2,806

25. Sid King has automobile liability insurance in the amount of 50/100/50. He also carries $250 deductible collision and full comprehensive coverage. Recently, he was at fault in an accident in which his car went out of control in the rain and struck four pedestrians. In an out-of-court settlement, they were awarded the following: Goya, $45,000; Truman, $68,000; Copeland, $16,000; and Kelly, $11,000. Damage to Sid's car amounted to $3,900. How much will the insurance company pay and to whom? $103,650 What part of the settlement will be Sid's responsibility? $40,250 How crashes affect auto premiums Average annual auto insurance premiums rise with each at-fault traffic accident: No accidents $1,387 One $1,689 Two $2,041 Three $2,348 Four $2,806

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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?
Scott was involved in an auto accident in which he was at fault. His own car sustained $2,780 damages and the other vehicle cost $2,848 to repair. Scott was not injured, but the driver of the other car required medical treatment costing $33,180. Scott's policy includes 10/20/5 liability, $500 deductible collision, and full coverage comprehensive. How much of the damages must the insurance company pay? a. $15,128 b. $25,128 c. $33,180 d. $38,808
The year before last, Victor earned $85,000 from his retail management position, and Maria began working full-time and earned $52,000 as a medical technician. After they took the standard deduction and claimed four exemptions (themselves plus their two children), their federal income tax liability was about $20,000. After being convinced by friends that they were paying too much in taxes, the cou- ple vowed to try to never again pay that much. Therefore, the Hernandezes embarked on a yearlong effort to reduce their income tax liability. This year they tracked all of their possible itemized deductions, and both made contribu- tions to retirement plans at their places of employment. A.) Calculate the Hernandezes’ income tax liability for this year as a joint return (using Table 4-2) given the following information: gross salary income (Victor, $85,000; Maria, $52,000); state income tax refund ($400); interest on checking and savings accounts ($250); holiday bonus from Maria’s employer…
Andre has an unendorsed HO-3 policy. His roof is torn off by a tornado. His limit on Coverage A is $100,000. RC of the roof is $25,000, and ACV of the roof is $22,000. RC of the covered contents damaged is $65,000, and ACV of the contents is $55,000. Ignoring the effect of any deductible, how much will his insurer pay for this loss? Please show your work.
Jeremy (unmarried) earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $10,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremey qualifies to file as head of household and has $23,000 in itemized deductions, including $2,000 of charitable contributions to his church. Determine the amount Jeremy’s taxes due.
-Betty is an unmarried attorney. During the year a hurricane completely destroys her home, which had a basis of $60,000. The value of her home before the tornado is $100,000 and the value afterwards is $35,000. Betty's home is located in a federally declared natural disaster area. Her AGI is $50,000. What is the amount that Betty can deduct after limitations? Group of answer choices $29,900. $54,900. $59,900. $65,000.
Jeremy (unmarried) earned $100,700 in salary and $6,700 in interest income during the year. Jeremy's employer withheld $10,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $23,700 in itemized deductions, including $2,000 of charitable contributions to his church. (Use the tax rate schedules.) Required: Determine Jeremy's tax refund or taxes due. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $7,050. What is Jeremy's tax refund or tax due including the tax on the capital gain? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Assume the original facts except that Jeremy has only $5,000 in itemized deductions. Assume the charitable contribution deduction for non-itemizers applies to 2022. What is Jeremy's tax refund or tax due?
Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $36,500 from County Bank and paid interest of $2.190. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loans under the following circumstances: (Leave no answer blank. Enter zero if applicable.) b. Lionel's AGI before deducting interest on higher-education loans is $79.000. Higher education expenses Interest deduction c. Lionel's AGI before deducting interest on higher-education loans is $90,000. Higher education expenses Interest deduction
Desmond is 25 years old, and he participates in his employer’s 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond’s saver’s credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.)a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000.
Megan crashed her car into another vehicle. The damage to her car cost $2,568 to repair. Damage to the other vehicle cost $6,820. Megan's collision coverage has a $1,000 deductible. Her property damage liability is $5,000. How much will her insurance company pay for repairs?
Milly, the wife of a notorious criminal and underworld gang leader, has signed a contractwith a newspaper for the sole rights to her story, “My Life as a Crime Boss’ Moll”. Under thecontract, the newspaper was to pay the full sum of $500,000 after the completion of thewriting of the articles and the publication of the first part of the series, which occurredduring the current income year. However, on the instruction of the taxpayer, only $50,000was paid into her account; the remainder of the sum remained unpaid at the end of theincome year.a. Discuss what part, if any, of the total contract value of $500,000 is assessable in thecurrent income year. Give reasons for your answer with reference to relevantlegislation, case law and any relevant ATO issued guidance.