For Class 10 (100/300 Bodily), the cost is $94, and for Class 10 (property 50M), it's $135. It's solely asking for the optional bodily injury cost, which amounts to $94.
Answer:
The answer is $59.50.
Explanation:
The calculations based on the scenario are as follows:
Profit on futures price = After futures price - before futures price
$63.50 - $59
= $4.50
Thus, the effective price that the company pays can be calculated using this formula:
Effective price paid = Spot price in July - Gain on futures price
= $64 - $4.50
= $59.50
S/N Account Titles & Explanation Debit Credit
1) Taxes Receivable—Current $3,300,000
Estimated Uncollectible Current Taxes $66,000
Revenues $3,234,000
2) Cash $2,987,500
Tax Receivable-current $2,987,500
3) Cash $28,900
Tax Receivable- Delinquent $26,500
Interest and Penalties Receivable On Taxes $2,400
4) Penalties and Interest Receivable $3,750
Estimated Uncollectible Interest $650
and Penalties Revenues $3,100
5) Taxes Receivable- Delinquent $312,500
(From $3,300,000-$2,987,500)
Estimated Uncollectible Current Taxes $66,000
Taxes Receivable- Current $312,500
Estimated Uncollectible Delinquent Taxes $66,000
