Introduction of the term underwriting
Give a brief introduction of the term underwriting?
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Underwriting is a procedure in that there are those financial service providers like bank, investments and insurers that uses these to find out the eligibility of a customer to obtain the products that is owned by them like insurance, equity capital and credit. In this procedure there are risks that are involved and generally financial provider participates in those kinds of risks and remains prepared to undertake them.
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The following information is taken from the financial statements of an entity: 20x6 20x5 Property, plant and equipment $4,100,000 $3,600,000 Accumulated depreciation (1,400,000) (1,050,000) Depreciation expense 650,000 Gain on disposal of PPE 35,000 The asset disposed of had a cost of $400,000
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