B-01 Larsen Report_Group 3

Can you help me with some tips Question?  Imagine you are a deciding Judge for the following scenario. Decide who should win the case including the reasoning for the decision? 1. Chip bought an insurance policy on his house from Insurance Co. The policy covered damage from fire but explicitly excluded coverage for harm caused “by or through an earthquake.” When an earthquake struck, Chip’s house suffered no fire damage but the earthquake caused a building some blocks away to catch on fire. That fire ultimately spread to Chip’s house, burning it down. 2. Is Insurance Co. liable to Chip? 3. Argument for Insurance Co.: The policy could not have been clearer or more explicit. If there had been no earthquake, Chip’s house would still be standing. The policy does not cover his loss. Argument for Chip: His house was not damaged by an earthquake, it burned down. The policy covered fire damage. If a contract is ambiguous, it must be interpreted against the drafter of the contract.

Solve the given problem: (Show your complete solution) A mentally deranged employee, Mr. Arson, put a torch to a factory on February 20, 2018. The resulting fire completely destroyed the plant and its contents. Fortunately, certain accounting records were kept in another building. They revealed the following for the period December 31, 2017 to February 20, 2018: Prime cost, P301,000 Gross Profit, P100,000 or 20% of sales Cost of Goods Available for Sale, P460,000 Direct Materials purchased, P170,000 Work in process, December 31, 2017, P34,000 Direct materials, December 31, 2017, P16,000 Finished Goods, December 31, 2017, P30,000 Factory overhead, 40% of conversion cost Direct Labor, P180,000 The insurance company wants to know the approximate cost of the inventories as a basis for negotiating a settlement. Compute for the following: 1. Direct Materials Inventory, 2/20/2018 2. Work in Process Inventory, 2/20/2018 3. Finished Goods Inventory, 2/20/2018 4. Total Manufacturing Cost 5.…

] In January, a flood which was declared a federal disaster, damaged Danny’s carpeting and furniture. In March, his golf cart was damaged in an accident when it was hit by a car. He was able to establish the following information to determine his losses on these assets. Asset   FMV before casualty            FMV after casualty            Insurance recovery   Cost    Date purchased Carpet $5,600 $1,100 $2,000 $6,000 10 months ago Furniture 5,500 1,500 3,200 3,000 11 years ago Golf Cart 6,500 2,000 1,500 7,000 8 months ago Danny’s AGI is $32,000 before considering these casualties and he has $12,000 of other itemized deductions. Determine Danny’s deductible casualty loss for 2019.

A comprehensive general liability policy includes property damage coverage for which of the following incidents? An insured intentionally causes a fire that burns down the building in which he is the sole tenant. An insured personal property on the premises destroyed by a fire An insured repair a boiler for a dry cleaner that explodes and causes extensive damage to the building An insured leases a computer that is subsequently damaged by an employee.

exploded. The fire severely damaged his freezer. Ant's insurance company wrote him a check to cover the damages, but he had to pay his deductible first. The amount paid 1. The storeroom in Ant's restaurant caught fire last week after his hot water heater to repair the freezer is an example of a loss. a. Liability b. Hazard c. Indirect d. Direct

1. You are a commercial lines broker, working for an insurance company, explain why you would recommend a commercial named-peril policy. James, a new client, left his last insurance company as he was disgruntled that he had to pay an extra $10,000 to remove the wreckage from one of his warehouses that was damaged in a fire. James' policy did not have enough insurance available to cover the cost of debris removal after the lass was paid. course- C12 insurance on property

Flint Hardware lost most of its inventory in an electrical fire that destroyed the company's warehouse and retail store in 2024. Fortunately, the accounting records were backed up on the owner's computer in her home office and could, therefore, be recovered. However, Flint uses the periodic inventory system. Therefore, it could not determine the amount of inventory that was lost in the fire because the inventory was destroyed. Flint's insurance company requires Flint to prepare a reasonable estimate of the lost inventory before it can process the insurance claim. You are Flint's accountant. You review the accounting records for 2023 and 2024 (to the date of the fire) and obtain the following information: 1. 2. 3. 4. 5. Sales in 2023 were $945,000. Sales in 2024 up to the time of the fire amounted to $665,000. Cost of goods sold in 2023 was $585,900. 2024 inventory purchased to the date of the fire totalled $477,000. The ending inventory reported on the 2023 statement of financial…

Question 1 Sugarcane Manufacturers experienced an explosion at their plant in the early hours of the morning of 12 June 20.13. The sugarcane cutting machine had a socket glitch that caused an explosion in the electrical box of the processing building. The explosion has caused serious fires to the neighboring sugarcane farms that were expecting harvest in the next three weeks. Half of the neighboring plantation has been burned already before the arrival of the firefighters. With the concerns on the losses, Sugarsweet Plantation has taken legal action against their burned plantation, as well as halt in the harvesting time and loss of customers. Legal claim has been filed as below: Loss of inventory:                                                                                 $ 500,000.00 Damage to property:                                                                            $ 100,000.00 Delay in harvests while Incurring costs:                                               $…

Casualty Losses. Tony is a carpenter who owns his own furniture manufacturing business. During the current year, a tornado (a federally declared disaster) damaged several pieces of equipment and destroyed his delivery truck and his personal automobile, which he often kept in the workshop garage. The asset descriptions and related values are as follows: Adjusted Insurance Basis FMV FMV Cost to Before Casualty After Casualty Repair/Replace $ 8,700 9,000 13,800 32,000 12,000 Asset Proceeds $ 9,000 3,000 15,300 17,500 28,000 $ 3,700 7,800 11,400 16,000 12,000 $4,000 Equipment A Equipment B Equipment C Delivery Truck Automobile $12,300 8,100 Not Available Not Available 18,000 15,000 Although he could not obtain its fair market value after the casualties, Tony decided to repair rather than replace Equipment C. Before considering any deductions because of these casualties, Tony's AGI is $80,000. What deductions may Tony take relating to these losses?

A fire destroys M’s computer That has  a replacement value $3,500 and Actual cash value of $2000. Under which of the following homeowner policy , the insurer will pay for maximum of    $0  $2,000  $2,500  $3,500

13. Determining What Amount the Insurance Company will Pay for the Accident. Eric's E Ford Mustang and Susan's Toyota Prius are insured with the same insurance agent. They have 50/100/15 vehicle insurance coverage. The very week of the windstorm, Susan had an accident. She lost control of her car, hit a parked car, and damaged a storefront. The damage to the parked car was $4,300 and the damage to the store was $15,400. What amount will the insurance company pay for Susan's car accident? P Type here to search

#10 Issue:  Sunrise Pools, Inc., is being sued by the Crescent Club for negligence when installing a new pool on Crescent Club’s property. Crescent Club alleges that the employees of Sunrise Pools damaged the foundation of the clubhouse and part of the golf course while operating heavy machinery to install the pool.   The lawsuit is for $1.5 million. At the time of the alleged incident, Sunrise Pools carried only $600,000 of liability insurance.   While reviewing the draft of Sunrise Pools’ annual report, its president deletes all references to this lawsuit. She is concerned that disclosure of this lawsuit in the annual report will be viewed by Crescent Club as admission of Sunrise’s wrongdoing, even though she privately admits that Sunrise employees were careless and believes that Sunrise Pools will be found liable for an amount in excess of $1 million. The president sends the amended draft of the annual report to the vice president of finance with a note stating that the lawsuit will…

ces Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2022, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV FMV Just Prior to Damage $ 8,600 8,625 1,350 Casualty loss deduction Original Item Cost (Basis) $ 6,300 14,575 4,775 Required: Their homeowner's insurance policy had a $11,755 deductible for the personal property, which was deducted from their insurance reimbursement of $16,275, resulting in a net payment of $4,520. Their AGI for 2022 was $47,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2022?

1. Calculating property loss claim coverage. Most home insurance policies cover jewelry for $1000 and silverware for $2500 unless items are covered with additional insurance. If $3800 worth of jewelry and $2800 worth of silverware were stolen from a family, what amount of the claim would not be covered by insurance?  2. Computing actual cash value coverage. What amount what a person with actual cash value (ACV) Coverage receive for two-year-old furniture destroyed by fire? The furniture would cost $1000 to replace today and had an estimated life of five years. 3. Determining replacement cost. What would it cost an insurance company to replace a family's personal property that originally cost $42,000? The replacement cost for the items have increased 15%.  Please show answer, explanation, and formula

Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area was declared) and destroyed a farm building and some farm equipment and damaged a barn.  Item Adjusted Basis FMV before Damage FMV after Damage Insurance Proceeds Building $ 119,100 $ 163,500 $ 0 $ 74,700 Equipment 90,600 66,800 0 17,100 Barn 133,300 212,500 133,300 57,700 Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $46,800 of taxable income last year. Their taxable income for the current year is $155,400, excluding the loss from the hurricane.  Required: a-1. Calculate the amount of the loss deductible by Derrick and his wife.a-2. What amount of loss should be adjusted against current and last year?

For each of the following subsequent events, indicate the impact to the financial statements Subsequent Event Financial Statement impact 1. An employee strike is called. 2. A lawsuit that was begun a year ago is settled. 3. A new subsidiary is purchased. 4. A major customer of the company is lost. 5. A significant decline in the value of inventories occurs. 6. A plant of the company is destroyed by fire. ...docx Presentation se....pdf Untitled docume....pdf Untitled docume....pdf MacBook Air

An earthquake does $5,000 in damage to a property covered under a dwelling policy. In addition to the initial earthquake damage, the tremors cause a gas main explosion, causing an additional $2,500 in damage to the insured property. How much will the insurer pay? AO Nothing BO $2,500 CO $5,000 DO $7,500