Anna bought a life insurance policy on her own life for a premium of P50,000 per annum for 10 years. The value of the policy is P1 Million. After paying 6 years of premium, Anna died and her heirs as beneficiaries received P1M from the insurance company. How much is the return on capital?
Anna bought a life insurance policy on her own life for a premium of P50,000 per annum for 10 years. The value of the policy is P1 Million. After paying 6 years of premium, Anna died and her heirs as beneficiaries received P1M from the insurance company. How much is the return on capital?
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 2DQ
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Anna bought a life insurance policy on her own life for a premium of P50,000 per annum for 10 years. The value of the policy is P1 Million. After paying 6 years of premium, Anna died and her heirs as beneficiaries received P1M from the insurance company. How much is the return on capital?
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