Math  /  Numbers & Operations

Question3. Mackenzie Insurance Company collected a premium of $15,000\$ 15,000 for a 1-year insurance policy on May 1. What amount should Mackenzie report as a current liability for Unearned Insurance Revenue at December 31? a. $0\$ 0. (b.) $5,000\$ 5,000. c. $10,000\$ 10,000. d. $15,000\$ 15,000.

Studdy Solution
Calculate the unearned insurance revenue by subtracting the earned revenue from the total premium.
- Unearned revenue = Total premium - Earned revenue - Unearned revenue = \$15,000 - \$10,000 = \$5,000
The amount Mackenzie should report as a current liability for Unearned Insurance Revenue at December 31 is:
$5,000\boxed{\$5,000}

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