Delta Insurance Company has a surplus -share treaty with Eversafe Reinsurance . Delta has a retention limit of \$200,000 , and nine lines of insurance are ceded to Eversafe . How much will Eversafe Re. pay if a \$1,600,000 building insured by Delta suffers an $800,000 loss ?

sa

Inman Construction Company is considering selling excess machinery with a book value of $279,300 (original cost of $400,900 less accumulated depreciation of $121,600) for $274,300, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $283,200 for five years, after which it is expected to have no residual value. During the period of the lease, Inman Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $25,100. a. Prepare a differential analysis, dated May 25 to determine whether Inman should lease (Alternative 1) or sell (Alternative 2) the machinery. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) May 25 Differential Effect Sell Machinery (Alternative 2) Lease Machinery on Income (Alternative 2) (Alternative 1) Revenues Costs Income (Loss) Feedback T Check My Work Subtract…

Universal Leasing leases electronic equipment to a variety of businesses. The company's primary service is providing alternate financing by acquiring equipment and leasing it to customers under long-term sales-type leases. ⚫ Universal earns interest under these arrangements at a 10% annual rate. • The company leased an electronic typesetting machine it purchased for $36,900 to a local publisher, Desktop Incorporated, on December 31, 2023. The lease contract specified annual payments of $8,353 beginning January 1, 2024, the beginning of the lease, and each December 31 through 2025 (three-year lease term). ⚫ The publisher had the option to purchase the machine on December 30, 2026, the end of the lease term, for $18,700 when it was expected to have a residual value of $22,700, a sufficient difference that exercise seems reasonably certain. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Show how…

am. 117.

Blossom, Inc. leases a piece of equipment to Wildhorse Company on January 1, 2025. The contract stipulates a lease term of 5 years, with equal annual rental payments of $8,880 at the end of each year. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. The asset has a fair value of $48,000, a book value of $43,000, and a useful life of 8 years. At the end of the lease term, Blossom expects the residual value of the asset to be $12,000, and this amount is guaranteed by a third party. Assuming Blossom wants to earn a 5% return on the lease and collectibility of the lease payments is probable, record its journal entry at the commencement of the lease on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically

While on vacation in the U.S.A. your insured's Cadillac is damaged in an accident with a Georgia registered automobile, insured for minimum limits of $15,000/$30,000 Bodily Injury, and $10,000 Property Damage Liability. The Georgia driver is 100% liable for $20,000 damage to your insured's automobile. Your insured has an O.A.P. 1 Owner's Policy including Direct Compensation- Property Damage with standard deductible, OPCF 44R-Family Protection Coverage but no Collision insurance. How would the claim be paid? OA) $19,500 under the insured's Direct Compensation-Property Damage coverage. OB) Nothing under the OPCF 44R and $10,000 under the Georgia policy. OC) $10,000 under the OPCF 44R and $9,500 under Direct Compensation-Property Damage coverage. OD) $1000 under the OPCF 44R and $10,000 under the Georgia policy.