Find the annual insurance premium.
42)
A person’s youthful–operator factor is 2.95. The annual premium for liability coverage is $216.20
for bodily injury and $100.80 for property damage.
42)
A)
$935.15
B)
$932.20
C)
$317.00
D)
$905.65
Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to
the nearest dollar.
43)
Replacement Cost of Building: $48,000
Face Value of Policy: $28,800
Amount of Loss: $7800
43)
A)
$7800
B)
$6240
C)
$5850
D)
$4680
Find the tax rate for the area. Round to the nearest tenth of a percent.
44)
Total tax needed: $5,990,000
Total assessed value: $322,620,000
44)
A)
0.2%
B)
1.9%
C)
53.9%
D)
5.4%
Find the amount of taxable income and the tax owed. The letter following the name indicates the marital status, and all
married people are filing jointly. Use $3700 for each personal exemption; a standard deduction of $5800 for single people,
$11,600 for married people filing jointly, $5800 for married people filing separately, and $8500 for head of a household;
and the following tax rate schedule.
22
45)
Name
Number of
Exemptions
Adjusted
Gross Income
Total
Deductions
Taxable
Income
Tax
Owed
The Healeys, M 2 $98,426 $8326
45)
A)
$85,226; $13,556.50
B)
$71,100; $12,925.00
C)
$79,426; $12,419.28
D)
$79,426; $12,106.50
Solve the problem.
46)
Custom Dry Cleaners owns a building with a replacement cost of $226,000 which is insured for
$153,680 with an 80% coinsurance clause. The building has a fire loss of $16,700. How much will
the insurance company pay?
46)
A)
$11,356
B)
$14,195
C)
$16,700
D)
$17,034
Find the annual premium in territory 1.
47)
Operator age: 18
Comprehensive/Collision Age Group: 4
Driver’s ed: yes
Symbol: 7
Liability: 15/30
Property: $10,000
Uninsured motorist: no
47)
A)
$541.00
B)
$475.00
C)
$1116.25
D)
$1401.25
Find the amount paid by each of the multiple carriers.
48)
The Hamilton Race Track had a fire loss of $319,000. They had insurance as follows: company A,
$250,000; company B, $200,000; and company C, $50,000. Find the amount paid by each carrier.
Assume the coinsurance requirement is met.
48)
A)
A pays: $159,500
B pays: $106,333
C pays: $53,167
B)
A pays: $127,600
B pays: $127,600
C pays: $63,800
C)
A pays: $159,500
B pays: $127,600
C pays: $31,900
D)
A pays: $319,000
B pays: $0
C pays: $0
Find the amount of taxable income and the tax owed. The letter following the name indicates the marital status, and all
married people are filing jointly. Use $3700 for each personal exemption; a standard deduction of $5800 for single people,
$11,600 for married people filing jointly, $5800 for married people filing separately, and $8500 for head of a household;
and the following tax rate schedule.
26
49)
Name
Number of
Exemptions
Adjusted
Gross Income
Total
Deductions
Taxable
Income
Tax
Owed
S. Chung, Head of Household 2 $68,912 $5925
49)
A)
$55,587; $8664.25
B)
$53,012; $8020.50
C)
$53,012; $8223.36
D)
$55,712; $8695.50
Find the tax refund or tax due. The letter following the name indicates the marital status, and all married people are filing
jointly. Assume a 52–week year. Use $3700 for each personal exemption; a standard deduction of $5800 for single people,
$11,600 for married people filing jointly, $5800 for married people filing separately, and $8500 for head of a household;
and the tax rate schedule.
28
50)
Name
Taxable
Income
Federal Income Tax
Withheld from Checks
Tax Refund
or Tax Due
The Lenzos, M $79,939 $222.12 weekly
50)
A)
$684.51 refund
B)
$9569.31 due
C)
$9569.31 refund
D)
$684.51 due
Find the amount paid by each of the multiple carriers.
51)
The Baker Fur Company had an insured fire loss of $1,812,000. It had insurance coverage as
follows: Company A, $2,000,000; Company B, $750,000; and Company C, $325,000. Find the
amount paid by each carrier assuming that the coinsurance requirement had been met.
51)
A)
$1,178,536.59, $441,951.22, $191,512.20
B)
$1,104,878.05, $491,056.91, $216,065.04
C)
$1,203,089.43, $429,674.80, $179,235.77
D)
$1,227,642.28, $405,121.95, $179,235.77
Find the tax. Use $3700 for each personal exemption; a standard deduction of $5800 for single people, $11,600 for married
people filing jointly, $5800 for married people filing separately, and $8500 for head of a household; and the tax rate
schedule.
30
52)
Glenn and Natalie Dowling had combined wages and salaries of $69,228, other income of $5223,
dividend income of $328, and interest income of $653. They have adjustments to income of $2400.
Their itemized deductions are $8272 in mortgage interest, $1611 in state income tax, $846 in real
estate taxes, and $1193 in charitable contributions. The Dowlings filed a joint return and claimed
four exemptions.
52)
A)
$4396.50
B)
$9027.50
C)
$6144.80
D)
$6096.50
53)
The Greenwoods had an adjusted gross income of $56,497 last year. They had deductions of $1045
for state income tax, $4205 for property tax, $5343 in mortgage interest, and $1276 in contributions.
The Greenwoods claim three exemptions and file a joint return.
53)
A)
$5844.20
B)
$5832.00
C)
$4179.20
D)
$4219.55
Solve the problem.
54)
A taxpayer’s property has a market value of $97,000. The rate of assessment in the area is 30%. The
tax rate is $7.65 per $100 of assessed valuation. Find the property tax.
54)
A)
$2226.15
B)
$7420.50
C)
$742,050.00
D)
$222,615.00
Find the amount paid by each of the multiple carriers.
55)
A building with a replacement cost of $1,500,000 has fire damages of $390,000. The insurance
coverage is split between Company A ($500,000) and Company B ($300,000). Find (a) the amount of
the loss covered and (b) amount paid by each company. (Note that the coinsurance requirement has
not been met.)
55)
A)
(a $390,000
(b) Company A: $195,000.00
Company B: $195,000.00
B)
(a) $390,000
(b) Company A: $243,750.00
Company B: $146,250.00
C)
(a) $260,000.00
(b) Company A: $130,000.00
Company B: $130,000.00
D)
(a) $260,000.00$162,500.00
(b) Company A: $162,500.00
Company B: $97,500.00
Find the tax. Use $3700 for each personal exemption; a standard deduction of $5800 for single people, $11,600 for married
people filing jointly, $5800 for married people filing separately, and $8500 for head of a household; and the tax rate
schedule.
32
56)
Megan Cortez had an adjusted gross income of $53,960 last year. She had deductions of $936 for
state income tax, $752 for property tax, $3946 in mortgage interest, and $304 in contributions.
Cortez claims one exemption and files as a single person.
56)
A)
$9615.00
B)
$8130.50
C)
$7240.00
D)
$7205.50
Find the assessed value for the property.
57)
Fair market value: $196,000
Rate of assessment: 76%
57)
A)
$1,489,600
B)
$47,040
C)
$74,480
D)
$148,960
Solve the problem.
58)
Golden Oaks Apartments has a replacement cost of $262,000 and is insured for $157,000. A fire loss
is for $23,000. Find the amount of loss paid by the company. Assume an 80% coinsurance clause.
58)
A)
$18,400
B)
$23,000
C)
$13,800
D)
$17,228
Find the tax refund or tax due. The letter following the name indicates the marital status, and all married people are filing
jointly. Assume a 52–week year. Use $3700 for each personal exemption; a standard deduction of $5800 for single people,
$11,600 for married people filing jointly, $5800 for married people filing separately, and $8500 for head of a household;
and the tax rate schedule.
34
59)
Name
Taxable
Income
Federal Income Tax
Withheld from Checks
Tax Refund
or Tax Due
L. Patel, S $49,230 $661.02 monthly
59)
A)
$500.26 due
B)
$7771.48 due
C)
$7771.48 refund
D)
$500.26 refund
Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to
the nearest dollar.
60)
Replacement Cost of Building: $980,000
Face Value of Policy: $637,000
Amount of Loss: $100,000
60)
A)
$40,625.00
B)
$65,000.00
C)
$100,000.00
D)
$81,250.00
Find the tax refund or tax due. The letter following the name indicates the marital status, and all married people are filing
jointly. Assume a 52–week year. Use $3700 for each personal exemption; a standard deduction of $5800 for single people,
$11,600 for married people filing jointly, $5800 for married people filing separately, and $8500 for head of a household;
and the tax rate schedule.
36
61)
Name
Taxable
Income
Federal Income Tax
Withheld from Checks
Tax Refund
or Tax Due
The Jacobs, M $80,196 $269.72 weekly
61)
A)
$9062.36 due
B)
$9062.36 refund
C)
$1726.44 refund
D)
$1726.44 due
Find the indicated premium. Round to the nearest cent.
62)
Find the monthly premium.
Face Value: $60,000
Age of Insured: 30
Sex of Insured: M
Type of Policy: Term
62)
A)
$10.30
B)
$9.92
C)
$109.20
D)
$113.40
Find the annual premium in territory 1.
63)
Operator age: 24
Comprehensive/Collision Age Group: 5
Driver’s ed: no
Symbol: 7
Liability: 25/50
Property: $10,000
Uninsured motorist: no
63)
A)
$1151.50
B)
$1176.00
C)
$1029.00
D)
$1445.50
Find the assessed value for the property.
64)
Fair market value: $97,000
Rate of assessment: 30%
64)
A)
$29,100
B)
$291,000
C)
$14,550
D)
$67,900
Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance.
65)
Area Rating: 3
Building Classification: C
Building Value: $235,000
Contents Value: $114,000
65)
A)
$1393.90
B)
$239.25
C)
$2392.50
D)
$2598.20
Find the annual insurance premium.
66)
A person’s youthful–operator factor is 2.95. The annual premium for liability coverage is $238.20
for bodily injury and $166.20 for property damage.
66)
A)
$1192.98
B)
$404.40
C)
$1163.48
D)
$1190.03