96)
The Dixie Beer Company had an insured fire loss of $89,000. It had insurance coverage as follows:
Company A, $500,000; Company B, $200,000; and Company C, $100,000. Find the amount paid by
each carrier assuming that the coinsurance requirement had been met.
96)
A)
$60,075, $17,800, $11,125
B)
$55,625, $22,250, $11,125
C)
$53,400, $22,250, $13,350
D)
$51,175, $24,475, $60,075
Find the indicated premium. Round to the nearest cent.
97)
Albert Newsom buys a universal life policy with a face value of $55,000. He is 35 years old. Find
the quarterly premium.
97)
A)
$106.54
B)
$109.82
C)
$37.21
D)
$208.97
Find the amount paid by each insurance company. Assume that any coinsurance requirement is met.
98)
Insurance loss: $15,000
Company A coverage: $90,000
Company B coverage: $30,000
98)
A)
A pays: $13,500
B pays: $1500
B)
A pays: $15,000
B pays: $0
C)
A pays: $10,500
B pays: $4500
D)
A pays: $11,250
B pays: $3750
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.
59
99)
Lilly Donaldson had wages of $31,616, other income of $2900, dividends of $207, interest of $335,
and a regular IRA contribution of $777 last year. She had deductions of $1345 for state income tax,
$1514 for property tax, $1534 in mortgage interest, and $787 in contributions. Donaldson claims
three exemptions and files as head of household.
99)
A)
$379.65
B)
$1594.65
C)
$-111,127.35
D)
$1847.75
Solve the problem.
100)
Pelican Lumber Company owns a building with a replacement cost of $604,000 which is insured for
$368,440 with an 80% coinsurance clause. The building has a fire loss of $22,600. How much will
the insurance company pay?
100)
A)
$22,600
B)
$13,786
C)
$17,233
D)
$20,679
101)
A pipe fell off a moving truck into the path of the car behind it. The driver and passenger were each
awarded $35,000 by the court and damage to the car was $12,000. The truck driver had 25/50
liability insurance limits and $10,000 property damage limits. Find the amount that the insurance
company must pay and the amount that the insured must pay.
101)
A)
$70,000, $0
B)
$50,000, $70,000
C)
$10,000, $2,000
D)
$60,000, $22,000
Find the indicated premium. Round to the nearest cent.
102)
Find the annual premium.
Face Value: $25,000
Age of Insured: 25
Sex of Insured: F
Type of Policy: Whole life
102)
A)
$57.00
B)
$126.50
C)
$64.50
D)
$101.75
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.
62
103)
Name
Number of
Exemptions
Adjusted
Gross Income
Total
Deductions
Taxable
Income
Tax
Owed
P. Gregory, Head of Household 2 $75,562 $8631
103)
A)
$59,531; $9650.25
B)
$59,662; $9650.25
C)
$59,662; $9683.00
D)
$59,662; $10,085.36
Find the adjusted gross income.
104)
Nancy earned $17,775 in salary, $1019 in unemployment compensation, and $89 in dividends. She
contributed $870 to her Individual Retirement Account.
104)
A)
$17,924
B)
$19,753
C)
$18,883
D)
$18,013
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.
64
105)
Name
Number of
Exemptions
Adjusted
Gross Income
Total
Deductions
Taxable
Income
Tax
Owed
The Edwards, M 3 $102,817 $11,660
105)
A)
$80,117; $12,612.76
B)
$80,117; $9364.25
C)
$80,057; $12,264.25
D)
$80,057; $12,595.96
Solve the problem.
106)
The Corner Cafe has a replacement cost of $262,000 and is insured for $186,020 with an 80%
coinsurance clause. The building has a fire loss of $24,300. How much will the insurance company
pay?
106)
A)
$21,566
B)
$25,880
C)
$24,300
D)
$17,253
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.
66
107)
Brian Moss had wages of $77,364, dividends of $371, interest of $662, and adjustments to income of
$1029 last year. He had deductions of $866 for state income tax, $464 for city income tax, $976 for
property tax, $7016 in mortgage interest, and $194 in contributions. He claims two exemptions and
files as head of household.
107)
A)
$8460.30
B)
$9880.50
C)
$10,134.50
D)
$3550.50
Find the amount paid by each of the multiple carriers.
108)
The Jason Manufacturing Company had an insured fire loss of $59,000. It had insurance coverage
as follows: Company A, $450,000; Company B, $275,000; and Company C, $100,000. Find the
amount paid by each carrier assuming that the coinsurance requirement had been met.
108)
A)
$32,181.82, $19,666.67, $7151.52
B)
$31,287.88, $22,348.48, $5363.64
C)
$29,500.00, $21,454.55, $8045.45
D)
$33,969.70, $20,560.61, $4469.70
109)
The Acme Tire Company had an insured fire loss of $2,316,000. It had insurance coverage as
follows: Company A, $2,000,000; Company B, $1,500,000; and Company C, $500,000. Find the
amount paid by each carrier assuming that the coinsurance requirement had been met.
109)
A)
$1,061,500, $965,000, $289,500
B)
$1,158,000, $868,500, $289,500
C)
$1,351,000, $579,000, $386,000
D)
$965,000, $868,500, $482,500
Find the tax rate for the area. Round to the nearest tenth of a percent.
110)
Total tax needed: $47,000
Total assessed value: $9,843,000
110)
A)
0.7%
B)
0.4%
C)
0.5%
D)
5.0%
111)
Total tax needed: $12,000
Total assessed value: $4,280,000
111)
A)
3.0%
B)
0.2%
C)
0.3%
D)
0.5%
Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to
the nearest dollar.
112)
Replacement Cost of Building: $302,000
Face Value of Policy: $211,000
Amount of Loss: $2000
112)
A)
$1600
B)
$2286
C)
$2000
D)
$1747
Find the annual insurance premium.
113)
A person’s youthful–operator factor is 2.35. The annual premium for liability coverage is $198.60
for bodily injury and $165.90 for property damage.
113)
A)
$854.23
B)
$856.58
C)
$880.08
D)
$364.50
Find the total annual premium. Use the fire insurance rate table. Rates are for each $100 of insurance.
114)
Area Rating: 2
Building Classification: B
Building Value: $956,000
Contents Value: $388,000
114)
A)
$7004.00
B)
$7490.40
C)
$643.60
D)
$6436.00
Find the property tax. Round to the nearest cent.
115)
Assessed valuation :$64,400
Tax rate :$1.40 per $100
115)
A)
$46,000.00
B)
$4600.00
C)
$90.16
D)
$901.60
Answer Key
Testname: C13
Answer Key
Testname: C13
Answer Key
Testname: C13