Calculate how much the Brown family would receive

Assignment Help Accounting Basics
Reference no: EM132695963

Problem - Evaluating homeowner's policy coverage - Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $350,000 and insured it (via an HO-5 policy) for $310,000. The policy reimburses for actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a two-year-old television set with a current replacement value of $600 and an estimated useful life of eight years. They also took jewelry valued at $1,850 and silver flatware valued at $3,000.

Required -

1. If the Browns' policy has an 80 percent co-insurance clause, do they have enough insurance?

2. Assuming a 50 percent coverage C limit, calculate how much the Brown family would receive if they filed a claim for the stolen items.

3. What advice would you give the Brown family about their homeowner's coverage?

Reference no: EM132695963

Questions Cloud

What is immunization : What is immunization (in the context of fixed income securities) and how does it work in environments of changing interest rates?
What is the maximum amount the insurance company would pay : What is the maximum amount the insurance company would pay Isabelle assuming that it reimburses losses on an actual cash-value basis
What organizations try to combat this problem in the us : What organizations try to combat this problem in the U.S. and how? How is this issue portrayed in the media (e.g. tv, online, news, print)? Give at least two.
Perspective enhances successful innovation implementations : Adds to the overall findings of the case and note how attribution-based perspective enhances successful innovation implementations.
Calculate how much the Brown family would receive : Assuming a 50 percent coverage C limit, calculate how much the Brown family would receive if they filed a claim for the stolen items
How the nursing theory incorporates metaparadigm concepts : Explain how the nursing theory incorporates the four metaparadigm concepts. Provide three evidence-based examples that demonstrate how the nursing theory
What is time-diversification : What is time-diversification and what role does it play in an investor's optimal investment plan?
Contribution of stock selection to the fund : The cash rate was 2.72 during the period. What was the contribution of stock selection to the fund's performance relative to benchmark?
While there are many benefits to use of cryptocurrency : While there are many benefits to the use of cryptocurrency, there is also much skepticism from the general public.

Reviews

Write a Review

Accounting Basics Questions & Answers

  During the year credit sales amounted to 800000 cash

during the year credit sales amounted to 800000. cash collected on credit sales amounted to 760000 and 18000 has been

  Calculate the activity rate for setup

Calculate the indirect manufacturing costs assigned to each unit of Product A under the traditional costing system.(Do not round intermediate)

  What amount of foreign currency gain or loss

On February 2, 2019, the invoice is paid when the exchange rate is ¥115:$1. What amount of foreign currency gain or loss

  Limit of blocks per cluster

In dos we have limit of _______ blocks per cluster.

  Financial reports influence business decisions

How does information from financial reports influence business decisions? Why is it important for business managers to understand the information found on financial reports?

  Write down two 350- to 500-word articles one article in

select a region approved by your instructor and choose a trading bloc nafta eu asean etc. within that region.write two

  How much taxable income does the partnership report

How much taxable income does the partnership report because of the disproportionate distribution to three partners? What is Hiram and Fred's basis in the art?

  Prepare the trading statement where the FIFO method is used

What is the value of ending inventory if the FIFO method of inventory costing is used? Prepare the trading statement where the FIFO method is used

  What will be the amount of accumulated depreciation on asset

Assuming the asset's salvage value is $2,600, what will be the amount of accumulated depreciation on this asset on December 31, Year 4?

  What is cost-volume-profit analysis

Which of the following would typically use a process costing system? What is cost-Volume-Profit Analysis?

  What are the main arguments sarah is trying to counter

What are the main arguments Sarah is trying to counter? That is, what are the reasons and rationalizations she needs to address in deciding

  What amount of cash did lance receive

What amount of cash did Lance receive from its customers during the year ended September 30, year 1

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd