Ask Question
BusinessBusiness
6 November, 17:24

an Indiana real estate licensee, embezzled $10,000 from client A, $20,000 from client B, and $25,000 from client C. All three clients received final judgments and payments out of the Indiana Recovery Fund. How much money will each client receive?

+2
Answers (2)
  1. 6 November, 19:13
    0
    Complete/Correct Question:

    Eldon, an Indiana real estate licensee, embezzled $10,000 from client A, $20,000 from client B, and $25,000 from client C. All three clients received final judgments and payments out of the Indiana Recovery Fund. How much money will each client receive?

    A. All three clients will receive the amount they lost.

    B. The $50,000 lifetime aggregate for a licensee will be prorated according to the loss of each client.

    C. There is a limit of $25,000 per judgment (not per client), and the money must be split three ways in this situation.

    D. Only a total of $50,000 per judgment is allowed. Therefore, client A receives $10,000 and clients B and C each receive $20,000.

    Answer:

    B, The $50,000 lifetime aggregate for a licensee will be prorated according to the loss of each client.

    Explanation:

    When a licensee embezzles funds of clients, the money is paid back through a Recovery fund. In the state of Indiana, the recovery fund usually is the lifetime aggregate of the licensee.

    In the case of the above licensee, he will have his lifetime aggregate which is $50,000 shared among the 3 clients according to the ratio of their losses. It might not cover the entire amount that was embezzled but will go some way to alleviate the loss a little bit.

    Cheers.
  2. 6 November, 20:21
    0
    Client A will receive $9,091

    Client B will receive $18,182

    Client C will receive $22,727

    Explanation:

    Indiana legislation establishes a $50,000 recovery limit that must be prorated between the three clients:

    the total amount that was embezzled = $10,000 + $20,000 + $25,000 = $55,000

    each client will receive $50,000 / $55,000 = $0.90909 per every dollar embezzled:

    Client A will receive = $10,000 x 0.9090 = $9,091

    Client B will receive = $20,000 x 0.9090 = $18,182

    Client C will receive = $25,000 x 0.9090 = $22,727
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “an Indiana real estate licensee, embezzled $10,000 from client A, $20,000 from client B, and $25,000 from client C. All three clients ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Assume you work for an employer who will contribute $60 a week for the next 20 years into a retirement plan for your benefit. At a discount rate of 9 percent, what is this employee benefit worth to you today?
Answers (1)
Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 550 $2.33 Apr. 20 Purchase 310 2.68 Dunbar sold 560 units of inventory during the month.
Answers (1)
Brand managers find out what people are saying about their brand on twitter by
Answers (1)
Which do you prefer: a bank account that pays 5 %5% per year (EAR) for three years or: a. An account that pays 2.5 %2.5% every six months for three years? b. An account that pays 7.5 %7.5% every 18 months for three years? c. An account that pays 0.
Answers (1)
The original capital that you deposit
Answers (1)
New Questions in Business
Which of the following items regarding references is NOT a red flag for hiring managers?
Answers (1)
Revenue at a major smartphone manufacturer was $1.9 billion for the nine months ending March 2, up 89 percent over revenues for the same period last year.
Answers (1)
Choose a company you know of that you think is good at innovation, describe at least one innovative thing that company has done.
Answers (1)
for a new bottling machine it is developing. Future research and development expenses could range from $4 to $9 million, with a most likely value around $7 million. The life of the product will be anywhere from 3 to 10 years.
Answers (1)
Ken Deangelo Company's internal controls over cash disbursements provide for the treasurer to sign checks imprinted by a check-writing machine in indelible ink after comparing the check with the approved invoice.
Answers (1)
Home » Business » an Indiana real estate licensee, embezzled $10,000 from client A, $20,000 from client B, and $25,000 from client C. All three clients received final judgments and payments out of the Indiana Recovery Fund. How much money will each client receive?
Sign Up Forgot Password?