Chilli Inc. insured the life of its president for P8,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P18,000 payable every first day of the month. The policy is dated January 1, 2017 and carries the following cash surrender values: Cash surrender End of policy year value 2017 2018 2019 125,600 2020 140,000 2021 168,200 2022 201,800 The corporation follows the calendar year as its fiscal period. The president died on June 1, 2022. How much is the gain on life insurance policy?

Chilli Inc. insured the life of its president for P8,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P18,000 payable every first day of the month. The policy is dated January 1, 2017 and carries the following cash surrender values: Cash surrender End of policy year value 2017 2018 2019 125,600 2020 140,000 2021 168,200 2022 201,800 The corporation follows the calendar year as its fiscal period. The president died on June 1, 2022. How much is the gain on life insurance policy?

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 25E

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