The Wings and Things Owns a Building Valued at $2,154,000

question 7

Multiple Choice

The Wings and Things owns a building valued at $2,154,000 but has decided to insure it for only $1,542,000. Their insurance policy stipulates coinsurance of 80%. If a fire were to cause $685,000 in damage, how much would the insurance company pay on the claim? (Round your answer to the nearest cent)

• A) $612,970.06
• B) $503,000.00
• C) $635,403.86
• D) $667,329.21

Understand the concept of dividends and their impact on retained earnings.

Identify transactions involving external exchanges.

Recognize correct journal entries for various financial transactions.

Understand the various ethical principles and their applications in the business context.

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Definitions:

Surplus

Funds that remain after a partnership has been dissolved and all other debts and prior obligations have been settled.

Vested Property Right

A right concerning property ownership that is fully guaranteed and cannot be taken away without due process.

Certificate of Limited Partnership

A legal document that formalizes the establishment of a limited partnership in accordance with state laws.

Secretary of State's Office

The office responsible for a range of duties including managing state records, overseeing elections, and handling business registrations depending on the country or state.