Pls. answer no. 19, 10 & 11. Pls answer all the questions I will give you the best rate you deserve. Thank you! 18.Hormonal Company has P1,000,000 ordinary life insurance policy on the president. Thepolicy year and accounting year coincide. The entity provides the following data for the year endedDecember 31, 2020:Cash surrender value, January 1Cash surrender value, December 31Annual advance premium paid-lanuary 1Dividend received-April 1245,000290,000150,00025.000The entity is the beneficiary under the life insurance policy. The insured died on January2. 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlementof insurance policy is received on February 28, 2021What is the life insurance expense on December 31, 2020?A.85,00080,000150,000125,000Computation:Premium paid- JanuaryВ.С.D.150,000Less: Dividend received25,000Increase in cash surrender value (290,000 – 245,000)Life insurance expense45,00020.00080,00019.Refer to the information in Question No. 18. What is the gain on life insurance settlementrecorded on February 28, 2021?1,000,000560,000850,000А.В.C.D.700,000 10.White Wolf Company purchased the following investments during 2019:CostP 900,0001000.000ClassificationSecurity ASecurity BTradingTradingMarket Value Dec. 31, 2019P1,000,0001.600,000On July 31, 2020, the entity sold half of the shares of Security B for P850,000. OnDecember 31, 2020, the shares of Security A and Security B had a market value ofP600,000 and P900,000, respectively. No other activity occurred during 2020 in relationto the trading security portfolio.What is the net gain or (loss) to be presented in the Income Statement at year-end of2020?A.250,000(250,000)300,000(300,000В.C.D.11.Refer to the information in question No. 10. What is the balance of Trading Securities tobe presented in the Statement of Financial Position at year-end of 2020?A.В.C.D.1.500,0001.900,0001,800,0001,300,000

18. Hormonal Company has P1,000.000 ordinary life insurance policy on the president. The policy year and accounting year coincide. The entity provides the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual sdvance premium paid-lanuary 1 Dividend received-April 1 245,000 290,000 150,000 25.000 The entity is the beneficiary under the life insurance policy. The insured died on January 2, 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement of insurance policy is received on February 28. 2021 What is the life insurance expense on December 31, 2020? A. 85,000 80,000 150,000 125,000 Computation: Premium paid- January Less: Dividend received B. С. D. 150,000 25,000 Increase in cash surrender value (290,000 - 245,000) 20.000 80,000 45.000 Life insurance expense 19. Refer to the information in Question No. 18. What is the gain on life insurance settlement recorded on February 28, 2021? 1.000,000 560,000 850,000 700,000 A. B. C. D.

18. Hormonal Company has P1,000.000 ordinary life insurance policy on the president. The policy year and accounting year coincide. The entity provides the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual sdvance premium paid-lanuary 1 Dividend received-April 1 245,000 290,000 150,000 25.000 The entity is the beneficiary under the life insurance policy. The insured died on January 2, 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement of insurance policy is received on February 28. 2021 What is the life insurance expense on December 31, 2020? A. 85,000 80,000 150,000 125,000 Computation: Premium paid- January Less: Dividend received B. С. D. 150,000 25,000 Increase in cash surrender value (290,000 - 245,000) 20.000 80,000 45.000 Life insurance expense 19. Refer to the information in Question No. 18. What is the gain on life insurance settlement recorded on February 28, 2021? 1.000,000 560,000 850,000 700,000 A. B. C. D.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 45P

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JJJ Company insured the life of its president for P2,000,000. The entity being the beneficiary of an ordinary life insurance policy. The annual premium is P80,000 and the policy is dated January 1, 2016. The cash surrender values are P15,000 on December 31, 2018 and P19,000 on December 31, 2019. The entity followed the calendar year as the fiscal period. The president died on October 1, 2019 and the policy is settled on December 31, 2019. What is the gain on life insurance settlement for 2019?
JJJ Company insured the life of its president for P2,000,000. The entity being the beneficiary of an ordinary life insurance policy. The annual premium is P80,000 and the policy is dated January 1, 2016. The cash surrender values are P15,000 on December 31, 2018 and P19,000 on December 31, 2019. The entity followed the calendar year as the fiscal period. The president died on October 1, 2019 and the policy is settled on December 31, 2019. What is the life insurance expense for 2019?
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