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.
41
67)
Name
Number of
Exemptions
Adjusted
Gross Income
Total
Deductions
Taxable
Income
Tax
Owed
M. Gaines, S 1 $59,241 $7327
67)
A)
$49,741; $8585.25
B)
$51,914; $9103.50
C)
$48,214; $8178.50
D)
$48,214; $6807.10
Solve the problem.
68)
A taxpayer’s property has a fair market value of $116,000. The rate of assessment in the area is 25%.
The tax rate is $6.70 per $100 of assessed valuation. Find the property tax.
68)
A)
$1943.00
B)
$7772.00
C)
$777,200.00
D)
$194,300.00
69)
Haverty’s Furniture owns a building with a replacement cost of $707,000 which is insured for
$438,340 with an 80% coinsurance clause. The building has a fire loss of $23,100. How much will
the insurance company pay?
69)
A)
$14,322
B)
$17,903
C)
$23,100
D)
$21,483
Find the assessed value for the property.
70)
Fair market value: $197,000
Rate of assessment: 70%
70)
A)
$137,900
B)
$59,100
C)
$1,379,000
D)
$68,950
Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance.
71)
Area Rating: 1
Building Classification: A
Building Value: $140,000
Contents Value: $45,000
71)
A)
$494.00
B)
$560.50
C)
$618.00
D)
$49.40
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.
44
72)
Mark Collins had an adjusted gross income of $30,354 last year. He had deductions of $926 for state
income tax, $569 for property tax, $2805 in mortgage interest, and $221 in contributions. Collins
claims one exemption and files as a single person.
72)
A)
$2894.95
B)
$1853.10
C)
$4169.95
D)
$2703.10
Solve the problem.
73)
A driver injures a bicycle rider. The driver has bodily injury limits of 15/30. In court, the injured
rider is awarded damages of $19,000. Find the amount that the insurance company must pay and
the amount that the insured must pay.
73)
A)
$0, $15,000
B)
$19,000, $0
C)
$30,000, $0
D)
$15,000, $4,000
Solve the problem. Use the fire insurance rate table if needed. Rates are for each $100 of insurance. Round to the nearest
dollar.
74)
SLM Instruments owns a class B building with a replacement cost of $661,000. Contents are valued
at $200,000. The area is rated 3. Find the fire insurance annual premium.
74)
A)
$477
B)
$5046
C)
$4075
D)
$4769
Find the indicated premium. Round to the nearest cent.
75)
Find the quarterly premium.
Face Value: $75,000
Age of Insured: 30
Sex of Insured: F
Type of Policy: Whole life
75)
A)
$379.50
B)
$98.67
C)
$424.50
D)
$110.37
Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to
the nearest dollar.
76)
Replacement Cost of Building: $670,000
Face Value of Policy: $447,000
Amount of Loss: $46,000
76)
A)
$38,362
B)
$30,667
C)
$36,800
D)
$46,000
Find the indicated premium. Round to the nearest cent.
77)
Find the total premium paid over 35 years for a whole life policy with a face value of $45,000.
Assume the policy is taken out by a 25–year–old woman.
77)
A)
$8048.25
B)
$7969.50
C)
$5481.00
D)
$6410.25
Solve the problem.
78)
In one county, property is assessed at 45% of market value with a tax rate of 35.8 mills. In a second
county, property is assessed at 34% of market value with a tax rate of 42.5 mills. If you had $110,000
to spend on a house, which county would charge the lower property tax? Find the annual amount
saved.
78)
A)
First county, $182.60
B)
First county, $1826.00
C)
Second county, $182.60
D)
Second county, $1826.00
79)
Poor visibility caused Vicky Weiner‘s car to crash into another car. She had 25/50 liability limits,
$10,000 property damage limits, and collision coverage with a $200 deductible. Damage to her car
was $2732 and to the other car was $12,300. A lawsuit awarded $44,000 and $32,000 in damages for
personal injury to the two persons in the other car. How much will the company pay and how
much must Vicky Weiner pay?
79)
A)
$62,532, $28,500
B)
$62,532, $26,200
C)
$64,832, $26,200
D)
$64,832, $28,500
Find the amount paid by each insurance company. Assume that any coinsurance requirement is met.
80)
Insurance loss: $30,000
Company A coverage: $90,000
Company B coverage: $10,000
80)
A)
A pays: $15,000
B pays: $15,000
B)
A pays: $27,000
B pays: $3000
C)
A pays: $22,500
B pays: $7500
D)
A pays: $30,000
B pays: $0
Find the indicated tax rate.
81)
Percent Per $1000
2.55%
81)
A)
$25.50
B)
$0.26
C)
$2.55
D)
25.5
Find the indicated premium. Round to the nearest cent.
82)
Find the semiannual premium.
Face Value: $65,000
Age of Insured: 40
Sex of Insured: M
Type of Policy: 20–pay life
82)
A)
$420.01
B)
$716.04
C)
$804.22
D)
$1576.90
Find the annual premium in territory 1.
83)
Operator age: 59
Comprehensive/Collision Age Group: 1
Driver’s ed: yes
Symbol: 7
Liability: 100/300
Property: $50,000
Uninsured motorist: yes
83)
A)
$608.00
B)
$674.00
C)
$1179.50
D)
$1044.70
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.
51
84)
Name
Number of
Exemptions
Adjusted
Gross Income
Total
Deductions
Taxable
Income
Tax
Owed
J. Braun, S 1 $12,893 $5960
84)
A)
$3233; $323.30
B)
$9193; $953.95
C)
$3393; $339.30
D)
$6933; $693.30
Find the property tax. Round to the nearest cent.
85)
Assessed valuation :$85,000
Tax rate :$7.00 per $100
85)
A)
$1214.29
B)
$12,142.86
C)
$5950.00
D)
$595.00
Find the annual insurance premium.
86)
A person’s youthful–operator factor is 2.35. The annual premium for liability coverage is $197.10
for bodily injury and $163.80 for property damage.
86)
A)
$848.12
B)
$360.90
C)
$850.47
D)
$824.62
Find the tax rate for the area. Round to the nearest tenth of a percent.
87)
Total tax needed: $970,000
Total assessed value: $113,630,000
87)
A)
0.8%
B)
0.9%
C)
9.00%
D)
1.1%
Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance.
88)
Area Rating: 2
Building Classification: C
Building Value: $934,600
Contents Value: $178,200
88)
A)
$5185.80
B)
$7313.58
C)
$6383.34
D)
$7971.78
Solve the problem.
89)
Four people are injured in an auto accident, and each receives $20,000 in damages from the court.
The driver has liability limits of 100/300. Find the amount that the insurance company must pay
and the amount that the insured must pay.
89)
A)
$0, $60,000
B)
$300,000, $20,000
C)
$80,000, $0
D)
$100,000, $20,000
Find the adjusted gross income.
90)
Tom and Sandy Bowles had incomes of $18,974 and $12,484. They also had $293 in interest income
and an adjustment of $932 in moving expenses.
90)
A)
$32,683
B)
$30,819
C)
$31,751
D)
$30,526
Find the indicated premium. Round to the nearest cent.
91)
Tom Crenna buys a whole life policy at age 25. The policy has a face value of $90,000. Find the
annual premium.
91)
A)
$232.25
B)
$366.30
C)
$459.90
D)
$455.40
Find the annual premium in territory 1.
92)
Operator age: 36
Driver’s ed: yes
Liability: 25/50
Property: $25,000
Comprehensive/Collision Age Group: 2
Uninsured motorist: yes
Symbol: 7
92)
A)
$899.00
B)
$518.00
C)
$1015.00
D)
$584.00
Solve the problem. Use the fire insurance rate table if needed. Rates are for each $100 of insurance. Round to the nearest
dollar.
93)
Laura Lee Candies owns a class A building with a replacement cost of $168,000. Contents are
valued at $96,000. The area is rated 3. Find the fire insurance annual premium.
93)
A)
$1128
B)
$926
C)
$106
D)
$1063
Find the property tax. Round to the nearest cent.
94)
Assessed valuation :$42,250
Tax rate :$63.50 per $1000
94)
A)
$2682.88
B)
$665.35
C)
$268.29
D)
$6653.50
Find the amount paid by each of the multiple carriers.
95)
The Star Tool Company had an insured fire loss of $1,416,000. It had insurance coverage as follows:
Company A, $4,500,000; Company B, $2,500,000; and Company C, $1,000,000. Find the amount
paid by each carrier assuming that the coinsurance requirement had been met.
95)
A)
$796,500, $442,500, $177,000
B)
$855,500, $354,000, $206,500
C)
$767,000, $413,000, $236,000
D)
$826,000, $413,000, $177,000