Question 1

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.

Accepted Answer

A) $8,362.65 
B) $10,051.75 
C) $8,985.25 
D) $3,387.75

Question 2

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

Accepted Answer

A) $696,000 
B) $69,600 
C) $17,400 
D) $34,800

Question 3

Find the indicated tax rate.
-

Accepted Answer

A) 64.0 
B) $0.64 
C) $64.00 
D) $6.4

Question 4

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.

Accepted Answer

A) $3,733 
B) $4,900 
C) $5,600 
D) $4,480

Question 5

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

Accepted Answer

A) $81.90 
B) $7.72 
C) $7.44 
D) $85.05

Question 6

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

Accepted Answer

A) $4.96 
B) $5.15 
C) $54.60 
D) $56.70

Question 7

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

Accepted Answer

The answer of Provide an appropriate response.
-Explain in your own...

Question 8

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

Accepted Answer

A) A pays: $7,500 
B) A pays: $15,000 
C) A pays: $11,250 
D) A pays: $13,500
B pays: $7,500 B pays: $0 B pays: $3,750 B pays: $1,500

Question 9

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.

Accepted Answer

A) $368,500.00 
B) $184,250.00 
C) $3,685.00 
D) $1,842.50

Question 10

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.

Accepted Answer

A) $227.97 
B) $40.59 
C) $116.22 
D) $119.81

Question 11

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

Accepted Answer

The answer of Provide an appropriate response.
-Give four forms of...

Question 12

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

Accepted Answer

A) $2,200 
B) $2,514 
C) $1,760 
D) $1,926

Question 13

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.

Accepted Answer

A) $0, $15,000 
B) $30,000, $0 
C) $23,000, $0 
D) $15,000, $8,000

Question 14

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

Accepted Answer

A) $541.00 
B) $475.00 
C) $1401.25 
D) $1116.25

Question 15

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.

Accepted Answer

A) $1,537,560.98, $576,585.37, $249,853.66 
B) $1,569,593.50, $560,569.11, $233,837.40 
C) $1,601,626.02, $528,536.59, $233,837.40 
D) $1,441,463.41, $640,650.41, $281,886.18

Question 16

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

Accepted Answer

The answer of Provide an appropriate response.
-Describe life insurance premium...

Question 17

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.

Accepted Answer

A) $3,813.80 
B) $5,841.65 
C) $4,902.75 
D) $3,334.15

Question 18

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

Accepted Answer

A) 11.2% 
B) 0.1% 
C) 0.9% 
D) 112.3%

Question 19

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?

Accepted Answer

A) $12,915 
B) $16,144 
C) $20,500 
D) $19,373

Question 20

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

Accepted Answer

A) $2,359.77 
B) $235.98 
C) $6,665.50 
D) $666.55

Exam 13: Taxes and Insurance

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

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

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. -