Ivy Gordon's home in Charleston was recently gutted in a fire. Her living and dining rooms were destroyed completely, and the damaged personal property had a replacement price of $36,000. The average age of the damaged personal property was 5 years, and its useful life was estimated to be 13 years. What is the maximum amount the insurance company would pay Ivy, assuming that it reimburses losses on an actual cash-value basis and has a $500 deductible? Assume that the total coverage requirement is met. Do not round intermediate calculations. Round the answer to the nearest cent.

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: Christopher's main home was damaged by a tornado, and his county was later deemed a federal disaster…

A: The objective of the question is to calculate Christopher's casualty loss due to the damage caused…

Q: How much does she have to include in taxable income?

A: Answer: Any settlement that is received after damage is taxable other than recovery for emotional…

Q: Last year Acme paid Ralph $15,000 to install a new air-conditioning unit at its headquarters…

A: Ralph received payment last year he has control over property also visible evidence of the payment.…

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: Johnny's personal-use classic Ford Mustang, for which he paid $12,000 seven years ago but now worth…

A: Taxpayer can deduct casualty and theft losses relating to home, household items, and vehicles on…

Q: lauren borrows Mary's car. Lauren has 25/50/25 limits, and Mary has 50/100/50 limits. Lauren, while…

A: A vehicle insurance coverage will protect you and other family members on the policy, whether you…

Q: Ron's building, which was used in his business, was destroyed in a fire. Ron's adjusted basis in the…

A: We determine the gain Ron will recognize from the insurance reimbursement. For this,  we need to…

Q: This year, Amy purchased $4,200 of equipment for use in her business. However, the machine was…

A: The method by which companies and individuals can gradually recoup the cost of certain assets…

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: Ms. Ganda bought residential house for P4

A: VAT VAT i.e. Value Added Tax is an indirect form of tax. It majorly eliminates cascading effect of…

Q: Rebecca Botson purchased a personal residence for $286,000. It had a fair market value of $300,000…

A: The Internal Revenue Service (IRS) allows individuals to deduct personal casualty and theft losses…

Q: Howie Homeowner has owned his home for 8 years. He purchased it for $250,000 and the insurance…

A: Home insurance is the cover provided to the home in case of any major risk to the home due to…

Q: Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at…

A: The objective of the question is to calculate the total amount of losses and expenses that Carmen…

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: us organization and restricted to be used for program expenses of the latter. *Cash in…

A: Solution :  Calculation Of Gross Estate  of the decedent : Cash in Bank 1,000,000.00 Receivables…

Q: Mr. Han has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage,…

A: Given:Mr. Han,Contract with dwelling coverage=$100000Personal property coverage=$50000 and $500…

Q: NEED answer

A: Step 1: Introduction to the Gain:Gain refers to the value received when assets, goods, or products…

Q: Mr. Ali purchased a fire insurance policy with a Sum Assured RO. 10,000. The value of his house is…

A: Claim is the amount which is to be received by the person (insured) against the damage done.

Q: Marci purchased her home seven years ago for $175,000. She sold it at a loss for $150,000 in 2022.…

A: In general, losses on the sale of personal residences are not tax-deductible. The sale of a personal…

Q: Will purchased a home for $350,000 five years ago. He did significant renovations and additions…

A: Insurance refers to the coverage provided by the insurer to the insured in case of any uncertainty.…

Q: Belinda was involved in a boating accident in 2023. Her speedboat, which was used only for personal…

A: To calculate Belinda's tentative casualty loss before any limitations, we need to determine the…

Q: Adrian contributed an antique vase he had owned for 25 years to a museum. At the time of the…

A: The objective of the question is to determine the amount Adrian can deduct from his taxes due to his…

Q: Fenwick operates a grocery store and his retail building was completely destroyed by a hurricane on…

A: Fenwick can avoid recognizing gain from the destruction of his retail building by replacing it with…

Q: a. What will the insurance company pay for this accident? Amount paid b. What is Marika's…

A: When referring to responsibility in the context of insurance, both the insurance company and the…

Q: Harry Hanover bought

A: Basis is generally the amount of your capital investment in property for tax purposes.. Use your…

Q: Use the information above to determine the following: the total amount your liability insurance…

A: Insurance policy = insurance policy is a contract between insurer and the policy holder. It is an…

Q: Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $230,000 and…

A: Given information: Home with a dwelling replacement value is $230,000 Insured policy value is…

Q: Medical Center Group Company. Body Beautiful charged Ms. Ganda the amount of P224,000 (inclusive of…

A: DST is documentary stamp duty that is being charged by the government on the mortgage of property.

Q: Which of the following is Katie's best option?

A: Case settlement is the situation when one party files court case against another party for the…

Q: During 2019, Janet lost her house due to a national disaster. Janet bought the house in 2000 for…

A: If the property is a business or income-generating asset and if it is completely destroyed, then the…

Q: Chris purchased a new John Deere tractor for his farming business on 15 May 2018. He paid $45 000…

A: Depreciation is the value of asset, which has been used and we can find annual depreciation on fixed…

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

A: Damaged items FMV just prior to damage (a) Original item cost (basis) (b) Actual loss (Lesser of a…

Q: Patricia is being sued for $3 million as a result of an automobile accident where she was deemed 50…

A: The objective of the question is to determine how the claim payment is structured given Patricia's…

Q: Mr. and Mrs. Marcum live in southern California in an area devastated by wildfires that the…

A: A "deductible casualty loss" is a financial loss incurred by an individual or corporation as a…

Q: What is John’s monthly payment on the loan assuming end-of-month payments?

A: Loan Payment: It is the payment made to the lender by the borrower to amortize the loan. These…

Q: aries it by wayard while on his way home. he survived but had to pay P250,000 for his…

A: given information he paid to hospitalization = P250,000 unable to work for 6 month  monthly salary =…

Q: 2. Jordan has some damages on his business property when tornado hit his area. Her truck was used…

A: Deductible casualty loss: A deductible casualty loss refers to a loss that results from the damage,…

Q: Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed…

A: IRS Publication 502 states about medical and insurance deductions. It lists down what expenses can…

Q: Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $270,000, and…

A: A realized gain on the involuntary conversion of property occurs when the taxpayer receives the…

Q: Karyn loaned $32,000 to her co-worker to begin a new business several years ago. If her co worker…

A: Bankruptcy is a legal procedure in which a person or company announces that they are unable to repay…

Q: Jennifer files

A: A casualty is the damage, destruction, or loss of property resulting from an identifiable event that…

Q: You and the driver of the other car were the only people involved in the accident. You were not…

A: Liability Insurance Coverage:- Liability car insurance is part of a car insurance policy that…

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.