On July 1, 2018, a two-year insurance premium on equipment in the amount of $792 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. Give the adjusting journal entry required for each item at December 31, 2018.

Joanne was diagnosed with as terminally ill (with less than one year to live). She is covered by an insurance policy that will pay her $90,000 of face amount of a $200,000 insurance policy. Joanne contributed $20,000 to the policy. What is the amount of income she must report if she accepts the $90,000?

Ying-Ru is beginning her senior year of college soccer and is deciding whether or not to buy insurance in case she is injured. There is a 50% chance she will not be injured and a 50% chance she will be. If she is not injured, she will received a $400 contract to play professionally. If she is injured, she will receive a $100 contract to carry water bottles.

(b) Insurance policy A will pay Ying-Ru $300 if she gets injured, so that she will always have a total wealth of $400−p, where p is the price of the policy. What is the largest price $p that Ying-Ru would be willing to pay for this policy?

(c) Policy Boffers Ying-Ru the option of buying as many dollars of insurance as she would like, at the price of p= 2/3 for $1 of insurance. Let c_ni be Ying-Ru’s consumption when there is no injury and c₁ be her consumption when she is injured. Write Ying-Ru’s state-contingent budget constraint. (Write your answer as the equation of a line, with c_ni isolated on the left, written as a function of c_i.)

(e) If policy Bwere the the only option available, what would be the optimal amount of insurance for Ying-Ru to buy?(f) Which policy is better for Ying-Ru—policy B or policy A with   p= 160?

Losses follow a Poisson frequency distribution with a mean of 2 per year. The amount of a loss is 1,2, or 3 with each having a probability of 1/3. Loss amounts are independent of the number of losses and from each other. An insurance policy covers all losses in a year subject to an annual aggregate deductible of 2. Calculate the expected claim payments for this insurance policy.

Suppose a person is looking for a one-year life insurance policy. They decide on a $208147 policy. This policy costs $268 per year. Suppose the probability the person dies in the year is 0.0004. Find the expected value of the policy for the insurance company. Give your answer as a decimal to at least two decimal places. These have to go into our TI-84 Plus calculator using the 1 varstats L1, L2 method...

According to a recent study, the number of times a person visits a doctor per year follows an approximately normal distribution with a mean of 4.6 visits and a standard deviation of 0.8 visits. A tech company wishes to offer their employees health insurance next year. To find the best health insurance plan, the company randomly selects employees and notes how many times they visited the doctor last year. If the research resulted in a standard error of 0.025 visits, how many employees did they sample?

Ralph has a demand curve for office visits (Qd) to the doctor in a year given by Qd = 20 – (P/10) where P is the price of an office visit for Ralph.

If the list price of an office visit is $50 and Ralph purchases health insurance in which he has a coinsurance rate of 20% (so Ralph pays only $10 for each visit), how many additional office visits at a list price of $50 does Ralph make relative to when he did not have insurance?

The ledger of Skysong Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

An analysis of the accounts shows the following.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expenses.