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- Ana bought a 1,500,000 php 10-year life insurance policy, total premium of P600,000. Ana died in the 6th year. Her daughter received 1,500,000 from the company. Total premiums paid by Ana was 360,000. How much is the taxable income? 360,000;1,500,000;0;1,140,000 How much is the return on capital? 360,000;1,500,000;0;1,140,000 How much is the return of capital? 360,000;1,500,000;0;1,140,000aries it by wayard while on his way home. he survived but had to pay P250,000 for his hopitalization. he was unable to work for 6 months and did not receive his usual P20,000 monthly salary. he sued the bus company and was awarded by a final judgement a sum of P560,000: P150,000 as a reimbursement for his hospitalization, P120,000 for his lost salaries, and P250,000 as moral damages for his pain and sufferings. 1. How much did he realize when he collected from the judgement?Bill received $100,000 in insurance proceeds to compensate him 3budiness equipment destroyed by a fire. The adjusted basis of the equipment was $80,000. Bill reinvested $95,000 of the insurance proceeds in replacement business equipment within the time allowed. He wants to defer gain to the maximum extent allowed. Bill must recognize how much gain? A. 2,500 B. 5,000 C. 25,000 D. 450,000
- 3. A homeowner’s house is insured at $950,000. The insurer requires 75% coverage for full insurance. The home sustains $25,300 damage from fire. Thepolicy has a deductible of $10,000, which decreases linearly to zero whenthe total cost of the loss is $20,000. The house is valued at $1,360,000.How much does the insurer reimburse?Pedro bought a 1.5 Million 10-year life insurance policy for a total premium of P600,000. In the 6th year, Pedro died and his heirs received 1.5Million from the insurance company. Total premiums paid by Pedro was 360,000. How much is the return OF capital? How much is the return ON capital? How much is the TAXABLE INCOME? Choices for the three questions are: 360,000 1.5 Million zero 1,140,000Please explain Pizza corporation factory was destroyed by a hurricane. The fair market value of the factory at the time of the hurricane was $500,000 and its adjusted basis was $750,000. Pizza received insurance proceeds of $620,000, which it used to immediately buy a new factory. What gain or loss will pizza recognize related to the factory in the current year? $120,000 gain $250,000 loss No gain or loss $130,000 loss
- Sam home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages. Amount of loss: $75,000 Deductible: $500 Amount of Insurance Actually Carried: $150,000 % Percentage Amount needed: 80% Replacement value: $200,000 What is the Total Amount he will pay? What is the percentage of the amount covered?Virginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $6,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss? $14,000 $8,000 $10,000 $4,000 None of the aboveLO.3 Howards roadside vegetable stand (adjusted basis of 275,000) is destroyed by a tractor-trailer accident. He receives insurance proceeds of 240,000 (300,000 fair market value 60,000 coinsurance). Howard immediately uses the proceeds plus additional cash of 45,000 to build another roadside vegetable stand at the same location. What are the tax consequences to Howard?
- LO.3 Seojun acquired an activity several years ago, and in the current year, it generates a loss of 50,000. Seojun has AGI of 140,000 before considering the loss from the activity. If the activity is a bakery and Seojun is not a material participant, what is his AGI?Harry's wife Lila passes away in January of the current year. Fortunately, Lila had a $1 million life insurance policy. Harry elects to receive all $1 million in the current year and spends $200,000 of it on a luxury around-the-world trip with his new girlfriend. Harry's gross income from the life insurance is: $0 $200,000 $800,000 $1,000,000Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $350,000 and insured it (via an HO-5 policy) for $310,000. The policy reimburses for actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a two-year-old television set with a current replacement value of $600 and an estimated useful life of eight years. They also took jewelry valued at $1,850 and silver flatware valued at $3,000. If the Browns’ policy has an 80 percent co-insurance clause, do they have enough insurance? Assuming a 50 percent coverage C limit, calculate how much the Brown family would receive if they filed a claim for the stolen items. What advice would you give the Brown family about their homeowner’s coverage?