Indicate whether the net income of Incorporation F, increases, decreases, or there is no change occurred for the given transactions.

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Question 2. Underwritten profit.From company records you ascertain that at the end of the year, you are given thefollowing data.1. the accounting department had unpaid claims amounting to K 4, 000.00,2. claims amounting to K 10,000.00 was paid the accounting department during theperiod.3. in the claims underwriting department, the monthly report for the final month of theaccounting period shows that the claims that were waiting for claims to be settledamounted to K 2,400.00 of which claims amounting to K 1,400 had not beenagreed with loss adjusters and clients.4. The Claims Manager had included a contingent amount of expected loss notbrought to the attention of the Insurer amounting to K 2, 100.00.5. You are further informed that underwriting expense reserves for unearnedpremium which stood at K6, 0006. Written premiums were 15% higher than Earned Premiums.7. Earned premiums (are those premiums for which the service for which thepremiums were paid (insurance protection) has been…

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Chapter 1, Problem 24EA

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Indicate whether the net income of Incorporation F, increases, decreases, or there is no change occurred for the given transactions.

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Question 2. Underwritten profit.From company records you ascertain that at the end of the year, you are given thefollowing data.1. the accounting department had unpaid claims amounting to K 4, 000.00,2. claims amounting to K 10,000.00 was paid the accounting department during theperiod.3. in the claims underwriting department, the monthly report for the final month of theaccounting period shows that the claims that were waiting for claims to be settledamounted to K 2,400.00 of which claims amounting to K 1,400 had not beenagreed with loss adjusters and clients.4. The Claims Manager had included a contingent amount of expected loss notbrought to the attention of the Insurer amounting to K 2, 100.00.5. You are further informed that underwriting expense reserves for unearnedpremium which stood at K6, 0006. Written premiums were 15% higher than Earned Premiums.7. Earned premiums (are those premiums for which the service for which thepremiums were paid (insurance protection) has been…

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