David has a Homeowners 3 policy that provides 280,000 of insurance on his dwelling, which has a current replacement value of 400,000.
Ignoring any deductible, how much will David collect if a roof with a replacement value of 16,000 but an actual cash value of 10,000 is destroyed in a fire?
A) 10,000
B) 12,000
C) 14,000
D) 16,000
Question 2
Wheeler Corporation had retained earnings as of 12/31/10 of 15 million. During 2011, Wheeler's
net income was 7 million. The retained earnings balance at the end of 2011 was equal to 20
million. Therefore,
A) Wheeler paid a dividend in 2010 of 5 million.
B) Wheeler purchased treasury stock in 2010 for 2 million.
C) Wheeler paid a dividend in 2010 of 2 million.
D) Wheeler sold common stock during 2010 for 5 million.
