Ward distribution company has determined its december 31 inventory on a lifo basis at $200,000. information pertaining to that inventory follows: estimated selling price - $204,000estimated cost of disposal - 10,000normal profit margin - 30,000current replacement cost - 180,000ward records losses that result from applying the lower-of-cost-or-market rule. at december 31, the loss that ward should recognize isa. $6,000b. $14,000c. $0d. $20,000

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value