(H) Cash Surrender Value: ABC Corp is covering for the life insurance of its chairman emeritus. The insurance had the following details: Insurance Paid Cash Surrender Value (Beg. of Year) P 50,000 50,000 50,000 50,000 Year (End of Year) 2019 2020 2021 P 40,000 50,000 62,000 75,000 2021 50,000 50,000 50,000 2022 2023 2024 The chairman died on July 31, 2024. ABC received a total sum of P1,200,000 from the insurance on Sept. 1, 2024. Compute for the following: 41. Life insurance expense – 2021 42. Life insurance expense – 2022 43. Life insurance expense – 2023 44. Life insurance expense – 2024 - - 45. Gain on life insurance settlement
(H) Cash Surrender Value: ABC Corp is covering for the life insurance of its chairman emeritus. The insurance had the following details: Insurance Paid Cash Surrender Value (Beg. of Year) P 50,000 50,000 50,000 50,000 Year (End of Year) 2019 2020 2021 P 40,000 50,000 62,000 75,000 2021 50,000 50,000 50,000 2022 2023 2024 The chairman died on July 31, 2024. ABC received a total sum of P1,200,000 from the insurance on Sept. 1, 2024. Compute for the following: 41. Life insurance expense – 2021 42. Life insurance expense – 2022 43. Life insurance expense – 2023 44. Life insurance expense – 2024 - - 45. Gain on life insurance settlement
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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Question
Cash Surrender Value: ABC Corp is covering for the life insurance of
its chairman emeritus. The insurance had the following details:
(shown in the image)
The chairman died on July 31, 2024. ABC received a total sum of
P1,200,000 from the insurance on Sept. 1, 2024. Compute for the
following:
a. Life insurance expense – 2021
b. Life insurance expense – 2022
c. Life insurance expense – 2023
d. Life insurance expense – 2024
e. Gain on life insurance settlement
Transcribed Image Text:(H) Cash Surrender Value: ABC Corp is covering for the life insurance of
its chairman emeritus. The insurance had the following details:
Year Insurance Paid Cash Surrender Value
(Beg. of Year)
P 50,000
50,000
50,000
50,000
50,000
50,000
50,000
(End of Year)
2019
2020
2021
2021
P 40,000
2022
50,000
62,000
2023
2024
75,000
The chairman died on July 31, 2024. ABC received a total sum of
P1,200,000 from the insurance on Sept. 1, 2024. Compute for the
following:
41. Life insurance expense – 2021
42. Life insurance expense – 2022
43. Life insurance expense – 2023
44. Life insurance expense – 2024
-
45. Gain on life insurance settlement
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