If a homeowner's insurance had a replacement cost policy that covered damage to the home and the home was completely destroyed, what amount would the insurance company cover based on the following:   - home depreciated value before the damage was $100,000 - home value to rebuild is $150,000 - home mortgage $120,000 - value of neighbour's home $130,000

Q: Jim Nike of Rifle, Colorado, recently had his truck slide off a gravel road and strike a tree. Jim's…

A: Given information: Damages cost $16,000 The book value of the truck is $25,000 a collision insurance…

Q: Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their…

A: A casualty loss deduction is a tax benefit that allows individuals to reduce their taxable income…

Q: Further, Nick incurred additional expenses in relation to his rental properties as follows: Expense…

A: Revenue Expenses: These are expenses incurred in the ordinary course of renting out a property, and…

Q: 9. Daisy's warehouse is destroyed by a tornado. The warehouse has an adjusted basis of $200,000 when…

A: Deferred realized gain :      The tax assessees have the option to choose between defer the realized…

Q: Jerome bought a factory in June 2004 for £680,000. In August 2020 wishing to move to a more…

A: Purchase in June 2004 for £680,000. Sale in August 2020 for £800,000. calculate the base cost of the…

Q: Henry stop making mortgage payment, the lender foreclosed. The outstanding balance on the recourse…

A: Foreclosure of mortgaged loan: When the lender gives the loan to the borrower on the mortgaged…

Q: Replacement Value of Building $340,000 Face Value of Policy $300,000 Coinsurance Amount Clause (%)…

A: Answer : Replacement value of the building = $340,000 Coinsurance clause = 90% Insurance required =…

Q: How much can Mark deduct as a result of the personal casualty losses related to a flood? Group of…

A: The loss for each asset is computed as follows:   Asset A: $875, The lesser of the adjusted basis of…

Q: Please solve this one

A: Answer (1): Option (d). 150% declining balance for 10 years.MACRS and ADS are two depreciation…

Q: Brian was involved in an auto accident and when she was at fault. As own car sustain $3726 damages…

A: Under 50/100/50 liability  50 is $50000 in Liability Insurance 100 is $100000 in Maximum Liability…

Q: Tom purchased a condo in Mississippi for rental property at a cost of $106,600. Using the class…

A: Most U.S. residential rental property is depreciated @ 3.636% each year. Period is 27.5 years   Data…

Q: Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their…

A: A casualty loss deduction is a tax benefit that allows individuals to reduce their taxable income…

Q: The property of Vin's Garage is worth $400,000. Vin has a fire insurance policy of $160,000 that…

A: Meaning of Insurance :-  Insurance is a legal agreement between two parties i.e. the insurance…

Q: Wildhorse Inc. recently replaced a piece of automatic equipment at a net price of $5,360, f.o.b.…

A: Journal entry are the first time recording of all the transactions or events in the book with the…

Q: Please provide Solutions

A: Step 1:Calculate the realized gainStep 2:Determine the amount reinvestedStep 3:Calculate the…

Q: calculate Special depreciation allowance for qualified property

A: Depreciation is the actually nothing but a weapon through which a business gets the recovery of the…

Q: a) Calculate the amount of cost recovery that can be taken in 20x5. b) What would your answer be if…

A: According to the Cost Basis of a Home Converted from Residence to Rental, the basis for depreciation…

Q: ter Henri stopped making his mortgage payments, the lender foreclosed on his home and issued a Form…

A: When any borrower is unable to pay the debt on payment than lender will take possession of the…

Q: (g) In Illinois, the Assessor's Office for the township you live in puts an assessed value on your…

A: Assessed value of a asset is the value determined by a officer, it is the updated value of a house…

Q: Problem 8-30 (Algorithmic) (LO. 1, 2) In 2019, José purchased a house for $203,200. He used the…

A: The residential property is the house that is used by the taxpayer for other own living and the…

Q: Problem 11. On January 12, 2021, a fire at a production facility damaged a number of adjacent…

A: In 2021, Pearl Company’s financial statements should recognize a liability of P2.4 million for the…

Q: A fire destroys M’s computer That has  a replacement value $3,500 and Actual cash value of $2000.…

A: Replacement value is the amount of money that is required to replace whatever is damaged or…

Q: Anne sold her home for $290,000 in 2021. Selling expenses were $17,400. She purchased it in 2015 for…

A: Amount realized on saleAmount realised on sale is the net amount realized from sale, selling expense…

Q: Riley Company purchased a whole life insurance policy for Janet Anderson, naming the company as the…

A: Deffered Compensation Liabilities :— Deffered Compensation Liabilities ia arrangement of payment by…

Q: How much would you receive with actual cash-value coverage for a four-year-old sofa destroyed by…

A: Original cost = $800Estimated life = 8 yearsReplacement cost = $900Number of years sofa used = 4…

Q: Before considering any deductions because of these casualties, Tony's AGI is $80,000. What…

A: Calculation of deductions that Tony may take are as follows:

Q: 7) You purchased a commercial building and lot for $190,000 on March 3rd, 2020. The lot itself was…

A: Modified Accelerated Cost Recovery System that allows a deduction for depreciation for the tax…

Q: 7. You and your partner purchased an apartment complex that cost $1,000,000 in June of 2010. You…

A: It is being said to calculate the depreciation deduction of 1st year for an apartment complex . The…

Q: Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area…

A: The taxpayer pays taxes on the taxable income. The taxpayer is also allowed to take a deduction of…

Q: 2. Did James meet the coinsurance requirement? Show your calculation. 3. Lightning strikes the roof…

A: Coinsurance  formula determines the reimbursement  amount a  home owner will get  from a claim. 80%…

Q: 2?The seller has agreed to let the buyer move into the property two days prior to the date of…

A: Homeowners  Insurance policy  is specific to the current home that is insured. Every detail of the…

Q: Need answer

A: To determine the gain Ron will recognize, we follow these steps:1. Determine the total gain:   -…

Q: A taxpayer acquires office equipment for $10,000. Which one of the following choices is not an…

A: Depreciation is the decline in the value of assets at the end of every year.

Q: Ann Jones uses a dry cleaning machine in her business, and it was partially destroyed by fire. At…

A: The loss or damage which is very casual and unexpected is called casual loss. It is a type of tax…

Q: Dosdos Appliances sells home theater set both on installment and cash basis. Mr. RJ purchased a set…

A: Instalment sales is a financial arrangement in which the buyer purchases the goods and repay the…

Q: Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area…

A: The Internal Revenue Code allows tax deductions for certain losses. To qualify, the loss must not…

Q: almalina purschased and installed a new safe in her store in may 1 2021 she paid 7000 for the safe…

A: ADS refers to the Alternative Depreciation system, under this system asset is depreciated over the…

Q: Blossom Inc. recently replaced a piece of automatic equipment at a net price of $3,500, f.o.b.…

A: Computation of purchase price of new equipment:

Q: $100,000 Historical cost of office building $40,000 depreciation taken on office building $250,000…

A: Given: Historical Cost =$100,000 Insurance = 80% of Fair market value before tornado. Fair market…

Q: How much would you receive with actual cash-value coverage for a four-year-old sofa destroyed by…

A: Original cost = $800Estimated life = 8 yearsReplacement cost = $855Number of years sofa used = 4…

Q: Tobias owns a bowling alley which was completely destroyed this year by a tornado. The fair market…

A: Recognized gain refers to the amount of gain which is made after selling the asset and these are…

Q: Basil has $105,000 AGI (before any rental loss). He also owns several rental properties in which hè…

A: Property owners with MAGI of $100,000 or less may deduct up to $25,000 in rental real estate losses…

Q: Blossom Inc. recently replaced a piece of automatic equipment at a net price of $3,500, f.o.b.…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

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.