On January 1,2016 , Coke Company insured the life of its president for P4,000,000, with an annual premium of P120,000 payable in advance at the beginning of each year. The company is the designated beneficiary and has the right to cancel the policy at its own option The cash surrender value of the policy at the end of each policy year is as follows: Cash surrender value 2016 - 0 2017 - 0 2018 - 36,000 2019 - 49,000 2020 - 62,000 The president died on October 1, 2020. Coke Company's accounting year is the calendar year. How much is the life insurance expense for the year ended December 31, 2020? a. P120,000 b. P107,000 c. P 90,000 d. P 80,250
On January 1,2016 , Coke Company insured the life of its president for P4,000,000, with an annual premium of P120,000 payable in advance at the beginning of each year. The company is the designated beneficiary and has the right to cancel the policy at its own option The cash surrender value of the policy at the end of each policy year is as follows: Cash surrender value 2016 - 0 2017 - 0 2018 - 36,000 2019 - 49,000 2020 - 62,000 The president died on October 1, 2020. Coke Company's accounting year is the calendar year. How much is the life insurance expense for the year ended December 31, 2020? a. P120,000 b. P107,000 c. P 90,000 d. P 80,250
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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On January 1,2016 , Coke Company insured the life of its president for P4,000,000, with an annual premium of P120,000 payable in advance at the beginning of each year. The company is the designated beneficiary and has the right to cancel the policy at its own option
The cash surrender value of the policy at the end of each policy year is as follows:
Cash surrender value
2016 - 0
2017 - 0
2018 - 36,000
2019 - 49,000
2020 - 62,000
The president died on October 1, 2020. Coke Company's accounting year is the calendar year.
How much is the life insurance expense for the year ended December 31, 2020?
The cash surrender value of the policy at the end of each policy year is as follows:
Cash surrender value
2016 - 0
2017 - 0
2018 - 36,000
2019 - 49,000
2020 - 62,000
The president died on October 1, 2020. Coke Company's accounting year is the calendar year.
How much is the life insurance expense for the year ended December 31, 2020?
a. P120,000
b. P107,000
c. P 90,000
d. P 80,250
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