Problem 15Ball Company purchased a P1,000,000 ordinary life insurance policy on its present. Ball Company is thebeneficiary under the life insurance policy. The policy year and Ball's accounting year coincide. Additionaldata available for the year ended December 31, 2018 are as follows:Cash surrender value, January 143,50054,00020,0003,000Cash surrender value, December 31Annual advance premium paid January 1Dividend received July 1What amount should be reported as life insurance expense for 2018?a. 6,500b. 9,500C. 17,000d. 20,000

Life insurance expense refers to the costs borne by the company in order to get an insurance…

a P1,000,000 ordinary life insurance policy on its p e insurance policy. The policy year and Ball's accour ar ended December 31, 2018 are as follows: nuary 1 43,500 54,000 ecember 31 m paid January 1 20,000 3,000 reported as life insurance expense for 2018?

a P1,000,000 ordinary life insurance policy on its p e insurance policy. The policy year and Ball's accour ar ended December 31, 2018 are as follows: nuary 1 43,500 54,000 ecember 31 m paid January 1 20,000 3,000 reported as life insurance expense for 2018?

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

Problem 15
Ball Company purchased a P1,000,000 ordinary life insurance policy on its present. Ball Company is the
beneficiary under the life insurance policy. The policy year and Ball's accounting year coincide. Additional
data available for the year ended December 31, 2018 are as follows:
Cash surrender value, January 1
43,500
54,000
20,000
3,000
Cash surrender value, December 31
Annual advance premium paid January 1
Dividend received July 1
What amount should be reported as life insurance expense for 2018?
a. 6,500
b. 9,500
C. 17,000
d. 20,000

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