Question

The ________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

Question 5 options:

	A) actual cash value
	B) replacement value
	C) personal property floater
	D) endorsement
	E) umbrella

tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes owed by:

Question 6 options:

	A) $14
	B) $10
	C) $35
	D) $28
	E) $50

A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of ________ percent.

Question 7 options:

	A) 10.3
	B) 14.2
	C) 8.6
	D) 16.7
	E) 12.3

George Washburn had earnings from his salary of $34,000, interest on savings of $800, a contribution to a traditional individual retirement account of $1,500, and dividends from mutual funds of $600. George's adjusted income would be:

Question 8 options:

	A) $35,400.
	B) $34,600.
	C) $34,800.
	D) $33,900.
	E) $34,000.

Answer 1

1st Question- Answer A) Actual Cash Value. Actual Cash Value is the method that considers depreciation of the item i.e. the reduction in the value of the item with the passage of time.

B) Replacement Value- This method only considers the amount required to replace the stolen/ damaged item. It does not consider depreciation.

C) Personal Property Floater- This method is similar to Replacement Value, it does not consider depreciation. Also it is used for replacing items that are unique or valuable for example an antique pendulum clock, a gramophone, a watch studded with diamonds worn by a once-upon-a-time king.

D) Endorsement - This is an additional clause or rider that is added to an insurance contract.

E) Umbrella- This is a type of insurance that insures multiple areas like property, medical, life etc. all under a single insurance contract.

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Question- tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes owed by:

Answer- A tax credit is the actual reduction in the amount of taxes. So Answer is 50$.

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Question- A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of ________ percent.

Answer- Given information- Taxable Income- $47,856, total tax bill of $5,889.

Tax Rate= Tax paid / Taxable income