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Sawyer Company self-insures its property for fire and storm damage. If the company were to...

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Accounting

Sawyer Company self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $2,000,000 per year. The company estimates that, on average, it will incur losses of $1,600,000 per year. In 2026, $700,000 worth of losses were sustained. How much total expense and/or loss should be recognized by Sawyer Company for 2026?

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