Exam 13: Taxes and Insurance

Find the tax in the following application problems. Use $4050 for each personal deduction, a standard deduction of $6300 for single taxpayers, $12,600 for married taxpayers filing jointly, $6300 for married taxpayers filing separately, and $9300 for head of household and the tax rate schedule. -Brian Moss had wages of $80,745, dividends of $374, interest of $684, and adjustments to income of $1,066 last year. He had deductions of $878 for state income tax, $452 for city income tax, $988 for property tax, $7,336 in mortgage interest, and $182 in contributions. He claims three exemptions and files as head of household.

Find the assessed value for the property. -Fair market value: $87,000 Rate of assessment: 80%

Find the indicated tax rate. -

Solve the problem. -The Midtown Deli building has a replacement cost of $86,000 and is insured for $60,200. It suffers a fire loss of $5,600. Find the amount of loss paid by the company. Assume an 80% coinsurance clause.

Find the indicated premium. Round to the nearest cent. -Find the monthly premium. Face Value: $45,000 Age of Insured: 30 Sex of Insured: F Type of Policy: Term

Find the indicated premium. Round to the nearest cent. -Find the monthly premium. Face Value: $30,000 Age of Insured: 30 Sex of Insured: M Type of Policy: Term

Provide an appropriate response. -Explain in your own words the difference between comprehensive insurance and collision insurance.

Find the amount paid by each insurance company. Assume that any coinsurance requirement is met. -Insurance loss: $15,000 Company A coverage: $90,000 Company B coverage: $10,000

Solve the problem. -A taxpayer's property has a fair market value of $110,000. The rate of assessment in the area is 50%. The tax rate is $3.35 per $100 of assessed valuation. Find the property tax.

Find the indicated premium. Round to the nearest cent. -Albert Newsom buys a universal life policy with a face value of $60,000. He is 35 years old. Find the quarterly premium.

Provide an appropriate response. -Give four forms of a tax rate and explain what each form means.

Find the amount to be paid by the insurance company. Assume the policy includes an 80% coinsurance clause. Round to the nearest dollar. -Replacement Cost of Building: $367,000 Face Value of Policy: $257,000 Amount of Loss: $2,200

Solve the problem. -A driver injures a bicycle rider. The driver has bodily injury limits of 15/30. In court, the injured rider is awarded damages of $23,000. Find the amount that the insurance company must pay and the amount that the insured must pay.

Find the annual premium in territory 1. -Operator age: 20 Comprehensive/Collision Age Group: 4 Driver's ed: yes Symbol: 7 Liability: 15/30 Property: $10,000 Uninsured motorist: no

Find the amount paid by each of the multiple carriers. -The Baker Fur Company had an insured fire loss of $2,364,000. It had insurance coverage as follows: Company A, $2,000,000; Company B, $750,000; and Company C, $325,000. Find the amount paid by each carrier assuming that the coinsurance requirement had been met.

Provide an appropriate response. -Describe life insurance premium factors and how they are used.

Find the tax in the following application problems. Use $4050 for each personal deduction, a standard deduction of $6300 for single taxpayers, $12,600 for married taxpayers filing jointly, $6300 for married taxpayers filing separately, and $9300 for head of household and the tax rate schedule. -The Greenwoods had an adjusted gross income of $57,492 last year. They had deductions of $1,095 for state income tax, $4,205 for property tax, $5,320 in mortgage interest, and $2,261 in contributions. The Greenwoods claim four exemptions and file a joint return.

Find the tax rate for the area. Round to the nearest tenth of a percent. -Total tax needed: $3,560,000 Total assessed value: $399,700,000

Solve the problem. -Haverty's Furniture owns a building with a replacement cost of $590,000 which is insured for $371,700 with an 80% coinsurance clause. The building has a fire loss of $20,500. How much will the insurance company pay?

Find the property tax. Round to the nearest cent. -