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Wellman Company self insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them

Wellman Company self insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $87,320 per year. The company estimates that on average it will incur losses of $42,993 per year. During the current year, $40,991 worth of losses were sustained. How much total expense and/or loss should be recognized by Wellman Company for the year?

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