Paul's car sild off the icy road, causing $2.000 in damage to his car. He was also treated for minor injuries, costing $1,400. His car insurance has a $500 deductible, after which the full loss is paidHis health insurance has a $250 deductible and covers 80% of medical cost.What were Paul's out-of-pocket costs from the incident?Paul's out-of-pocket costs are $(630). (Round your response to the nearest penny)

Answer:- Out of pocket cost meaning:- An out of pocket costs is a one time payment of cash that may…

Answered: Paul's car alid off the loy road,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jorge and his wife own a beachfront vacation home in Savannah, Georgia. During the year, high winds from a tropical storm shatter a sliding glass door and rain from the storm causes extensive water damage to the kitchen. The Savannah area qualified for federal disaster relief. Fortunately, during a calm in the storm, Jorge is able to board up the door, which limits the water damage to the kitchen. The items damaged in the storm are: Cost ValueBefore ValueAfter InsuranceProceeds Kitchen furniture $2,085 $1,325 $430 $510 TV 265 200 0 115 Refrigerator 1,000 920 90 775 Linoleum flooring 1,645 880 0 470 In addition, Jorge pays $610 to replace the sliding glass door. The insurance company will not reimburse him for the cost of the new door because the old sliding glass door did not meet the company's standards for a hurricane area. The amount of Jorge's casualty loss before considering any annual limitations that may apply is…
Bill recently had his truck slide off a gravel road and strike a tree. Bill's vehicle suffered $17,500 in damage. The truck has a book value of $40,000. Bill carried collision insurance with a $500 deductible. How much will Bill be reimbursed by his policy?
Oscar Wang was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included five days of hospitalization at $900 a day, $9,400 in surgical fees, $6,800 in physician's fees (including time in the hospital and six follow-up office visits), $460 in prescription medications, and $2,100 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If Oscar had an indemnity plan that pays 90 percent of his charges with a $1,000 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket? Round the answer to the nearest dollar. $ What would Oscar's out-of-pocket expenses be if he belonged to an HMO with a $40 co-pay for office visits? Assume there are no other out-of-pocket costs. Round the answer to the nearest dollar. $ Monthly premiums are $320 for the indemnity plan and $455 for the HMO. If he has no other medical expenses this year, which plan provides…
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?
LO.2Barbara incurred the following expenses during 2020: $840 dues at a health club she joined at the suggestion of her physician to improve her general physical condition, $240 for multiple vitamins and antioxidant vitamins, $3,500 for a smoking cessation program, $250 for nonprescription nicotine gum, $2,600 for insulin, and $7,200 for funeral expenses for her mother who passed away in June. Barbara's AGI for 2020 is $54,000. What is Barbara's medical expense deduction for 2020? 1
Ray had a terminal illness that would require almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of $100,000. He had paid $25,000 of premiums on the policy. The insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000. He accepted the $80,000. Albert used $15,000 to pay his medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy: a.Albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses. b.Albert must recognize $65,000 ($80,000 – $15,000) of gross income. c.Albert is not required to recognize any gross income because of his terminal illness. d.Albert must recognize $40,000 ($80,000 – $25,000 – $15,000) of gross income.
Personal automobile policy coverage. Zachary Lee has a personal automobile policy [PAP] with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each. Zachary’s 18-year old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
Jes had a personal casualty loss in 20X1 due to a hurricane damaging his home. The area where his loss occurred was a declared federal disaster area. Jes’s 20X1 adjusted gross income was $ 200,000. • The fair market value of John’s home before the casualty was $ 450,000, the fair market value after the casualty was $ 275,000.• John purchased his home 6 years ago for $ 150,000 and made no capital improvements while he owned the house.• John received $ 110,000 from his insurance company due to this loss. How much will Jes deduct as a casualty loss in 20X1 if he itemizes his deductions? a. Zerob. $ 65,000c. $ 40,000d. $ 44,900e. $ 19,900
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-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.
Samuel Nguyen was seriously injured in a skiing accident that broke both his legs and an arm. His medical expenses included 8 days of hospitalization at $1,100 a day, $5,100 in surgical fees, $7,300 in physician's fees (including time in the hospital and six follow-up office visits), $340 in prescription medications, and $2,900 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If Samuel had a health insurance plan that pays 90 percent of his charges with a $500 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket? Round to the nearest dollar.$ _____________________ What would Samuel’s out-of-pocket expenses be if he belonged to an HMO with a $40 co-pay for office visits? Round to the nearest dollar.$ ____________________ Monthly premiums are $225 for the standard plan and $205 for the HMO. If he had no other medical expenses this year, which plan would have provided more…

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