You were in an accident that required surgery and five days of recovery in the hospital. Your total hospital bill reached $100,000. At the time of your accident you had previously paid nothing in health care costs for the year. Your health insurance has a deductible of $1250 per year, a coinsurance rate for hospitalization of 10%, and an individual out-of-pocket maximum payment of $3000 for the year. How much must you pay out-of-pocket for your care in this situation? How much would you recelve with actual cash-value coverage for a four-year-old sofa destroyed by fire? The sofa would cost $870 to replace today, whereas it cost $800 four years ago and had an estimated life of 8 years. Answer: You are listed as the sole beneficiary of your father's $300,000 life insurance policy. If you father dies, how much tax do you owe on this money