Eddie's Automotive has four locations insured on a Building and Personal Property Coverage Form with 90% coinsurance. The policy limits on business personal property are scheduled at each store are as follows: Store 1: Limit of Insurance = $104,000 Store 2: Limit of Insurance = $270,000 Store 3: Limit of Insurance = $180,000 Store 4: Limit of Insurance = $180,000 Eddie's suffers a loss at Store 1. The value of destroyed property is $115,000, A. How much will Eddie's policy pay before application of the deductible? B. Why?

Eddie's Automotive has four locations insured on a Building and Personal Property Coverage Form with 90% coinsurance. The policy limits on business personal property are scheduled at each store are as follows: Store 1: Limit of Insurance = $104,000 Store 2: Limit of Insurance = $270,000 Store 3: Limit of Insurance = $180,000 Store 4: Limit of Insurance = $180,000 Eddie's suffers a loss at Store 1. The value of destroyed property is $115,000, A. How much will Eddie's policy pay before application of the deductible? B. Why?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 8EA: Record the journal entry for each of the following transactions. Glow Industries purchases 750...

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