Based on the Following Information,how Much Disability Insurance Coverage Per

question 58

Essay

Based on the following information,how much disability insurance coverage per month would be required:
∙ Mortgage payment -$1,600/month
∙ Household insurance -$100/month
∙ Car insurance -$200/month
∙ Gas and oil -$90/month ($30 commuting to and from work)
∙ Food -$200/month ($70 represents lunch at work which would be reduced by half if the meals were prepared at home)
Employer disability insurance would provide $500/month and it is doubtful that anything would be received from either Social Security or worker's compensation.
(a)$1,525
(b)$2,190
(c)$1,495
(d)$1,625

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Definitions:

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Par Common Stock

The face value assigned to common stock shares, representing the minimum amount that can be credited to share capital; it is not necessarily indicative of the market value.

Journalize

The act of recording business transactions in the journal, noting the accounts affected and their debits and credits.

Paid-In Capital

The total amount of money shareholders have invested in the company through the purchase of its stock.