3. On January 2, 2019, the corporation insured the life of its president for P2,000,000. The corporation was designated as the beneficiary of the policy. The annual premium was P80,000. The policy carried the following cash surrender values: December 31, 2019 December 31, 2020 December 31, 2021 60,000 85,000 117,500 170,000 December 31, 2022 December 31, 2023 December 31, 2024 The president died on March 1, 2022. Prepare entries related to the life insurance for the year 2019-2022. What is the gain on life insurance settlement?
3. On January 2, 2019, the corporation insured the life of its president for P2,000,000. The corporation was designated as the beneficiary of the policy. The annual premium was P80,000. The policy carried the following cash surrender values: December 31, 2019 December 31, 2020 December 31, 2021 60,000 85,000 117,500 170,000 December 31, 2022 December 31, 2023 December 31, 2024 The president died on March 1, 2022. Prepare entries related to the life insurance for the year 2019-2022. What is the gain on life insurance settlement?
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
Related questions
Question
Transcribed Image Text:3. On January 2, 2019, the corporation insured the life of its president for P2,000,000. The corporation was
designated as the beneficiary of the policy. The annual premium was P80,000. The policy carried the following
cash surrender values:
December 31, 2019
December 31, 2020
December 31, 2021
60,000
85,000
December 31, 2022
December 31, 2023
117,500
December 31, 2024
170,000
The president died on March 1, 2022. Prepare entries related to the life insurance for the year 2019-2022. What
is the gain on life insurance settlement?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning