FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John owns a house. He insured it for 150,000 with the clause of replacement cost insurance . The house is 10 years old and has

John owns a house. He insured it for 150,000 with the clause of replacement cost insurance. The house is 10 years old and has a useful life of 100 years. Its market fair value is 140,000. How much will John collect for his loss, if his house is totally destroyed in tornado? Explain your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Finance With Excel

Principles Of Finance With Excel

Authors: Simon Benninga

2nd Edition

0199755477, 9780199755479

More Books

Students also viewed these Finance questions

Question

★★★★★
Two spaceships are approaching each other. (a) If the speed of each is 0.6c relative to the earth, what is the speed of one relative to the other? (b) If the speed of each relative to the earth is...

Answered: 1 week ago

Question

★★★★★
=+8. Some IQ tests are standardized to a Normal model with

Answered: 1 week ago

Question

★★★★★
1. You are the Social Media Manager for a local retirement home. Using the best-practice and accuracy checking guidelines in this chapter, fnd an online article that would interest this prospective...

Answered: 1 week ago

Question

★★★★★
Cran Health Products is a cranberry cooperative that operates two divisions, a harvesting division and a processing division. Currently, all of harvestings output is converted into cranberry juice by...

Answered: 1 week ago

Question

★★★★★
John owns a house. He insured it for 150,000 with the clause of replacement cost insurance . The house is 10 years old and has a useful life of 100 years. Its market fair value is 140,000. How much...

Answered: 1 week ago

Question

★★★★★
58. A company incurred the following costs Utilities$10,000 Machine repair$55,000 Machine depreciation $12,000 Direct materials$75,000 Indirect labor$150,000 Direct labor$20,000 If the company...

Answered: 1 week ago

Question

★★★★★
QUESTION 3 Henderson & Sons is a local accounting entity employing six accountants, four tax consultants and six administrative staff. The entity has a costing system that assigns costs to clients....

Answered: 1 week ago

Question

★★★★★
You have just been hired as the brand manager of a line of scooters for a large toy manufacturer. Your job is to promote the products in your line and your key performance indicator is sales growth....

Answered: 1 week ago

Question

★★★★★
Forecasts: application exercisesInstructions Quantitative methods of forecasting, in particular the simple moving average and the seasonal multiplicative method. You are the operations manager at...

Answered: 1 week ago

Question

★★★★★
Patrick Innes has a business that he estimates will produce income of $130,000 per year. If he incorporates this business in 2020, all of the income would be eligible for the small business deduction...

Answered: 1 week ago

Question

★★★★★
22. A stock index is currently trading at 50. Paul Tripp, CFA, wants to value two-year index options using the binomial model. In any year, the stock will either increase in value by 20% or fall in...

Answered: 1 week ago

Previous Question Next Question