Dear expert solve correctly and in detail =2 upvotes Calculate the total cost of a fire insurance premium for a building and contents given the following.(Use Table 20.3.)Rating of area2ClassB$BuildingContents70,000 $20,000Total premium cost TABLE 20.3Fire insurance rates per $100 of coverage for buildings and contentsCLASSIFICATION OF BUILDINGCLASS ACLASS BRating of area Building1282.33341Contents3547.50Building Contents4154.60.655061

Here,Building cost is $70,000Content cost is $20,000Class BRating of Area is 2

Answered: Calculate the total cost of a fire…

Calculate the total cost of a fire insurance premium for a building and contents given the following. (Use Table 20.3.) Rating of area 2 Class B $ Building Contents 70,000 $ 20,000 Total premium cost

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter6: Investing And Financing Activities

Section: Chapter Questions

Problem 4.5C

See similar textbooks

Related questions

Q: Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of…

A: Present value of amount is computed by following formula:-Present value = Future value * Present…

Q: Dungan Corporation is evaluating a proposal to purchase a new drill press to replace a less…

A: The net present value is a capital budgeting technique that is used to evaluate proposed…

Q: 9. Bank ABC offers six-year loans where the principal and interest are repaid at end of the term.…

A: Deferred loans, also known as deferred-payment loans or deferred-interest loans, are a type of loan…

Q: A loan of $10200 is to be amortized with quarterly payments over five years. The interest on the…

A: Principal Amount = p = $10,200Compound = Quarterly = 4Time = t = 5 * 4 = 20Interest rate = r = 7.5 /…

Q: Tina has saved $23000 from her summer jobs. Rather than work for a living, she plans to buy an…

A: First, subtract the airfare from her savings to find out how much she can invest in the…

Q: Enterprise, Inc. bonds have an annual coupon rate of 11 percent. The interest is paid semiannually…

A: Coupon rate = 11%Par value = $1000Bond maturity = 8 yearsYield to maturity = 15%

Q: $0.68 $0.73 $0.78 Assume that 6-month put options on New Zealand dollars are available with an…

A: To determine the most appropriate hedge for Promina Group and compare it to an unhedged strategy,…

Q: The pros and cons of a Mexican firm taking the route of an Initial Public Offering (IPO), the Global…

A: A company must carefully consider its financial situation, risk appetite, and long-term strategy…

Q: A contract is estimated to yield net annual returns for $ 14000 for years. To secure the contract,…

A: Annual cash flow = $14000Interest rate of discounting = 13%Immediate outlay = $70000Here, contract…

Q: Three construction jobs are being considered by Clam City Construction (see the accompanying table).…

A: IRR is also known as internal rate of return. It is a capital budegting technique which helps in…

Q: Delta Corporation has the following capital structure: Cost (aftertax)WeightsWeighted CostDebt…

A: Retained earnings represents the amount of profit retained by the firm after taking into…

Q: Let 5-$32,0-30%-6.3%, and 6-1% (continuously compounded) Compute the Black-Scholes price for a…

A: A technique based on mathematics called the Black-Scholes model is used to determine the…

Q: Kyle is a grade 5 student currently taking his modular class at home since the pandemic happened in…

A: The future value of an annuity is the total value of a series of regular, equal cash flows received…

Q: What is the project's expected NPV?

A: NPV is the net present value and shows how much value is added by project and is based on the time…

Q: The economic service life of a project is best described as _____________________? a. Another term…

A: Economic service life refers to the period during which an asset, such as machinery, equipment, or a…

Q: What is the net after tax cash flow for year 4 if the applicable tax rate is 40%? a. $39,328 b.…

A: We are given the following income statement and cash flows of a project for years 1-5:Required:1.…

Q: a. Richard owns $33,000 worth of XYZ's stock. What rate of return is he expecting? Rate of return b.…

A: We have to apply the MM hypothesis and propositions illustrating the principles that in the absence…

Q: an of $22,450 at 5.81% compounded semi-annually is to be repaid with payments at the end of every 6…

A: Loans are paid by equal periodic payments and these payments carry the payment for interest and…

Q: The Washington Nationals are considering adding more luxury booths to Nats Stadium. The project will…

A: NPV or Net present value is the difference of sum of present value of all future cashflows and the…

Q: Your facility is undergoing a major expansion, which will require significant capital investment…

A: Cost of the machinery = $7.2 million The accumulated depreciation is

Q: Give typing answer with explanation and conclusion Louise Gendron’s monthly gross income is…

A: Debt payment to income ratio refers to the amount a person owes to amount a person earns. This…

Q: Three years ago you purchased a 8 % coupon bond that pays semiannual coupon payments for $987. What…

A: Bonds refer to instruments that are issued by companies to raise debt capital from their investors.…

Q: American General offers a 14-year annuity with a guaranteed rate of 4.17% compounded annually. How…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: Q. 2 What are the half year and the one-year LIBOR spot rates on Oct 16,2018? LIBOR rates on Oct…

A: To find the half-year and one-year LIBOR spot rates on October 16, 2018, we need to look at the…

Q: A farm that has adopted the Financial Guidelines for Agricultural Producers has the following…

A: Market value is the value computed using the market value of the per share multiplied by the number…

Q: Show the monthly return of the company and S&P 500 in the same graph. What is your…

A: The risk and return tradeoff is a fundamental concept in finance that highlights the relationship…

Q: Equity beta Tax rate Cost of debt Debt ratio Risk-free rate of interest Market risk premium DIVISION…

A: Division WACC:To take into consideration the various risk levels inside the organisation, a…

Q: How much should you invest each month in order to have $400,000 if your rate of return is 6.1%…

A: The periodic Amount that needs to be invested is calculated using the formula future value of the…

Q: Suppose you have the following information concerning a particular options. Stock price, S = RM 21…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: (Solving for n with non-annual periods) Approximately how many years would it take for an investment…

A: Future value is the estimated value of an investment or asset at a specific point in time in the…

Q: Assume that today the euro futures contracts with a September 15th delivery date are priced at…

A: Foreign Exchange is currency exchange. It is the rate of currency which between the two countries…

Q: Given a one-year European call options with strike price, K are available on two differ- ent stocks…

A: When the stock price changes by $1, and the call option price changes by $0.5. The change in this…

Q: We talk about a problem in Corporate Governance in active monitoring. A monitor learns about the Bad…

A: The Net Present Value (NPV) of a project is a critical financial metric used to determine its…

Q: are evaluating the proposed acquisition of a new machine costing $63,000, and it falls into the…

A: Company has to do many projects but resources are limited and the projects are to be selected on the…

Q: Given two stocks with E(r1) = 8%, E(r2) = 10%, σ1 = 15%, σ2 = 20%. Calculate the expected returns…

A: Portfolio Return is the rate of return which is earned by the investor from the stock. When the…

Q: Sigma Tools will lease a computerized stamping machine from StarBanc. The machine costs $500,000 and…

A: The machine cost is $500,000 and its useful life is 5 years.The depreciation is to be calculated as…

Q: How much should Jeffrey's dad invest into a savings account today, to be able to pay for Jeffrey's…

A: Compound Interest:Compound interest is the interest in savings that is computed using both the…

Q: ortfolio 50/50 Risk-f

A: There are only 2 stocks in the universe of Stock Market, based on the given data for 3 months we…

Q: Problem 3 Linz Styles Coupon Rate (RWJJ Ch. 20, Q5) Linz Stylers intends to issue perpetual…

A: Bond value is the present value of all coupon payments and par value. Bonds payable is one of the…

Q: An investor is forming a portfolio by investing $50,000 in stock A that has a beta of 1.50, and…

A: CAPM means capital asset pricing model used for calculating expected returns. It makes use of risk…

Q: Consider a CAPM economy. The risk free rate (rf ) is 4% and the expected market return (rM ) is 10%.…

A: Beta is a measure of the sensitivity of a stock or portfolio to the overall market movements.…

Q: Problem 13-25 (Algo) Certainty equivalent approach [LO13-1) Sheila Goodman recently received her MBA…

A: Given: Variable in the question: YearInflow ($)Coefficient of…

Q: Assume that the probability of death from age 25 to 30 for females is 0.03% per year. This means…

A: The life is highly risky and death can happen any time so life insurance is quite necessary to have…

Q: For the following ordinary annuity, determine the size of the periodic payment. Present Value…

A: To find the size of the periodic payment for the ordinary annuity,, we can use the formula for the…

Q: alculate the monthly interest rate differences and estimate the AUD/USD exchange rate for each month…

A: With periodic interest rate of Australia (rA), periodic interest rate of US (rU) and exchange spot…

Q: Cellular Access, Inc., a cellular telephone service provider, reported net income of $250.2 million…

A: Net income = $250.2 millionDepreciation = $102.1 millionCapital expenditures = $196.3…

Q: he principal is borrowed at a simple interest rate r for a period of time t. Find the simple…

A: Simple interest is a straightforward method of calculating interest based on a fixed percentage of…

Q: Bill Padley expects to Invest $19,000 for 2 years, after which he wants to receive $22,990.00. What…

A: Present Value = pv = $19,000Time = t = 2 yearsFuture Value = fv = $22,990

Q: You are buying a house priced at $654,125. You plan to pay 20% of the price for down payment and…

A: A mortgage loan is a loan provided by a bank or lending institution to a borrower for the purpose of…

Q: a. How many of the coupon bonds would you need to issue to raise the $24 million? How many of the…

A: Bond is a fixed income instrument that represents a loan made by investor to the borrower.A zero…

Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

100%

Dear expert solve correctly and in detail =2 upvotes

Calculate the total cost of a fire insurance premium for a building and contents given the following.
(Use Table 20.3.)
Rating of area
2
Class
B
$
Building
Contents
70,000 $
20,000
Total premium cost

TABLE 20.3
Fire insurance rates per $100 of coverage for buildings and contents
CLASSIFICATION OF BUILDING
CLASS A
CLASS B
Rating of area Building
1
28
2
.33
3
41
Contents
35
47
.50
Building Contents
41
54
.60
.65
50
61

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Given:

VIEW

Step 2: Calculate Total Cost of Fire Insurance Premium:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

https://thevoiceslu.com/2020/10/massy-waterfront-gutted-by-fire/?fbclid=IwAR1BoNgDi0OJmqeG5Po8Mo8xYwV9DFVc42OPhtn5HRY2gRK6nB8HIAwwufw
11 NANGUTANG started constructing a building for its own use on January 1, 2020. NANGUTANG provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Rate Amount of loan Interest Cost 5% P10,000,000 P 500,000 10% 20,000,000 2,000,000 Total P30,000,000 P2,500,000 Construction expenditures: July 1, 2020 7,000,000 November 31,2020 3,000,000 December 31, 2020 1,000,000 The amount of borrowing cost that should be charged to profit or loss for the period is? Group of answer choices 340,142 312,375 2,208,450 2,187,625
3378 The insurer's promises of protection to the insured are contained in which of the following parts of a policy? a. declarations b. conditions c. insuring agreement d. exclusions 3379 Which of the following Homeowners policies provides coverage for damage caused to a roof by the weight of accumulated ice and snow? a. HO-0 Form b. HO-1 Form c. HO-2 Form d. HO-4 Form
2) Our company paid 50.000 TL on 10.01.2021 to the architectural and engineering firm for the construction project drawing of the building to be built. Record the relevant journal (daily book).
43. What is the carrying amount of the investment in associates at December 31, 2021? A. P708,500 B. P716,000 C. P718,000 D. P720,000
ABC Co. had these loans outstanding for the year 2020: Specific Loan: P1,000,000 at 10% General Loan P20,000,000 at12%. The company began a self-construction of a building on January 1, 2020 and was completed on December 31, 2020. The following expenditures were made during 2020: January 1:P1,000,000 July 1: P2,000,000 November 1: P3,000,000 Total: P6,000,000 The cost of constructed building on December 31, 2020 must be
ABC Co. had these loans outstanding for the year 2020: Specific Loan: P1,000,000 at 10% General Loan P20,000,000 at12%. The company began a self-construction of a building on January 1, 2020 and was completed on December 31, 2020. The following expenditures were made during 2020: January 1:P1,000,000 July 1: P2,000,000 November 1: P3,000,000 Total: P6,000,000. How much is the cost of constructed building on December 31, 2020? P6,000,000 P6,250,000 P6,280,000 P6,300,000
Ch5 5 Four new computers, for which the cost exceeded the city’s capitalization threshold, were purchased for use in the city clerk’s office using General Fund resources. Which of the following entries would be required to completely record this transaction? Multiple Choice General Journal Debit CreditGeneral Fund: Expenditures 8,000 Vouchers Payable 8,000 General Journal Debit CreditGovernmental Activities: Expenses 8,000 Vouchers Payable 8,000 General Journal Debit CreditGeneral Fund: Expenditures 8,000 Vouchers Payable 8,000 Governmental Activities: Expenses 8,000 Vouchers Payable 8,000 General Journal Debit CreditGeneral Fund: Expenditures 8,000 Vouchers Payable 8,000 Governmental Activities: Equipment 8,000 Vouchers Payable 8,000
Q 9 – A company constructs a building for its own use. Construction began on January 1, 2020 and ended on December 31,2020. In 2020, the company made the following expenditures related to this building: January 1, $480,000; March 31, $900,000; June 30, $1,600,000; and October 30, $1,800,000. To help finance construction, the company arranged a 15% construction loan on January 1 for $1,000,000. The company’s other borrowings, outstanding for the whole year, consisted of a $2 million loan and a $4 million note with interest rates of 8% and 6%, respectively. Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. Q 10 –Eshaq Company’s record of transactions concerning part X for the month of February was as follows.
The following information relates to Samson Engineering as at 30 June 2023: RProfit for the year180 000Drawings50 000Property920 000Long-term borrowings510 000Trade receivables380 000Plant and machinery250 000Trade payables180 000Short-term borrowings260 000Fixtures and fittings90 000Inventories420 000Equity at 1 July 20221 175 000Cash45 000Motor vehicles150 000 RequiredCalculate the following:The total non-current assets The total current assetsThe total assets
7. The Town of Mirbat operates an enterprise fund. Following is the information related to the fund’s 2020 operating activities. a. Rental income of OMR47,222 was accrued. Subsequently, cash in the amount of OMR45,105 was received on accounts. b. Cash expenses for the period included: administrative services, OMR12,603; maintenance and repairs, OMR36,441; supplies and materials, OMR3,896; and utilities, OMR15,062. c. The Central Station Fund received a OMR30,000 transfer of funds from the General Fund. d. Adjustments were made for depreciation OMR1,760 and for uncollectible accounts 334. Required: Prepare general journal entries to record the Fund’s operating activities for the year.
LO 17-4 36. The City of Lawrence opens a solid waste landfill in 2020 that is at 54 percent of capacity on December 31, 2020. City officials had initially anticipated closure costs of $2 million but later that year decided that closure costs would actually be $2.4 million. None of These costs will be incurred until 2024, when the landfill is scheduled to be closed. a. What appears on the government-wide financial statements for this landfill for the year ended December 31, 2020? b. Assuming that the landfill is recorded within the general fund, what appears on the fund financial statements for this landfill for the year ended December 31, 2020?