Nakasiguro Company insured its president for P 5,000,000 with an annual premium, paid initially at the beginning of 2021, for P 80,000. Nakasiguro is the beneficiary. The following transactions aside from the regular premium payment, took place. Cash Surrender ValueDividends Received (at year end)2023P 60,000P 5,000202472,0003,000202584,000-202692,0004,000 The President died April 1, 2026.How much is the gain recognized when the policy was claimed? a. 4,856,000 b. 4,874,000 c. 4,876,000 d. 4,854,000

Answered: 2023 P 60,000 P 5,000 2024 72,000…

Business

Accounting

2023 P 60,000 P 5,000 2024 72,000 3,000 2025 84,000 - 2026 92,000 4,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 25P

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Question

Nakasiguro Company insured its president for P 5,000,000 with an annual premium, paid initially at the beginning of 2021, for P 80,000. Nakasiguro is the beneficiary. The following transactions aside from the regular premium payment, took place.

	Cash Surrender Value	Dividends Received (at year end)
2023	P 60,000	P 5,000
2024	72,000	3,000
2025	84,000	-
2026	92,000	4,000

The President died April 1, 2026.

How much is the gain recognized when the policy was claimed?

4,856,000

4,874,000

4,876,000

4,854,000

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