IJ Company purchased a P2,000,000 ordinary life insurance policy on its president and the company is the named beneficiary. Additional data are available for the year ended December 31, 2019: Cash surrender value, January 1 P87,000 Cash surrender value, December 31 108,000 Annual premium paid in advance on January 1 40,000 Dividend received on July 1 6,000 How much should JJ Company report as life insurance expense for 2019?

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A: SOLUTION- Insurance expenses are incurred by the policyholder.

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A: This is an income computation question, please refer to step two to see the answer.

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A: Insurance expenses are incurred by the policyholder.

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A: Unearned Income(Advance Income) are those income which have been received by the firm during the…