Eddie's Automotive has four locations insured on a Building and Personal Property Coverage Form with 90% coinsurance. The policy limits on business personal property are scheduled at each store are as follows: Store 1: Limit of Insurance = $104,000 Store 2: Limit of Insurance = $270,000 Store 3: Limit of Insurance = $180,000 Store 4: Limit of Insurance = $180,000 Eddie's suffers a loss at Store 1. The value of destroyed property is $115,000, A. How much will Eddie's policy pay before application of the deductible? B. Why?
Eddie's Automotive has four locations insured on a Building and Personal Property Coverage Form with 90% coinsurance. The policy limits on business personal property are scheduled at each store are as follows: Store 1: Limit of Insurance = $104,000 Store 2: Limit of Insurance = $270,000 Store 3: Limit of Insurance = $180,000 Store 4: Limit of Insurance = $180,000 Eddie's suffers a loss at Store 1. The value of destroyed property is $115,000, A. How much will Eddie's policy pay before application of the deductible? B. Why?
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 1EA: On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of...
Related questions
Question
Eddie's Automotive has four locations insured on a Building and Personal Property Coverage Form with 90% coinsurance. The policy limits on business personal property are scheduled at each store are as follows:
Store 1: Limit of Insurance = $104,000
Store 2: Limit of Insurance = $270,000
Store 3: Limit of Insurance = $180,000
Store 4: Limit of Insurance = $180,000
Eddie's suffers a loss at Store 1. The value of destroyed property is $115,000,
A. How much will Eddie's policy pay before application of the deductible?
B. Why?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT