An insurance company received a claim for a car accident with the following details: The car's value
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Question:
An insurance company received a claim for a car accident with the following details:
- The car's value before the accident was $25,000.
- The car's value after the accident was $10,000.
- The owner of the car claimed that the car was in excellent condition before the accident and that the accident caused the car's value to decrease.
- The insurance company hired an appraiser who evaluated the car and determined that the car's value before the accident was actually $20,000 and that the car's value after the accident was $10,000.
Assuming that the owner of the car is lying and that the appraiser's evaluation is correct, answer the following questions:
a) What is the amount of the fraudulent claim made by the car owner?
b) What is the percentage difference between the actual value of the car before the accident and the value claimed by the car owner?
c) What is the percentage decrease in the car's value as a result of the accident according to the appraiser's evaluation?
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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