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Calculation of Final Contract Price.
A $500,000 fixed price economic price adjustment contract contains a provision requiring an adjustment for 20 percent of the contract price based on changes in the index identified in the contract. The index at the time of contract award was 120.0. At the time of delivery the index was 132.0. What is the final contract price?
Purpose general journal entries to record the above transactions.
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Ppaid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a face value of $40,000. At age 60, Linda decides to collect the face value of the policy. In the year of collection, explain how much will Linda include in her ta..
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