Nakasiguro Company insured its president for P 5,000,000 with an annual premium, paid initially at the beginning of 2021, for P 80,000. Nakasiguro is the beneficiary. The following transactions aside from the regular premium payment, took place. Cash Surrender ValueDividends Received (at year end)2023P 60,000P 5,000202472,0003,000202584,000-202692,0004,000 The President died April 1, 2026.How much is the Cash Surrender Value be reported, before any claim, when the President died? a. 66,000 b. 86,000 c. 64,000 d. 84,000

Cash surrender value :it is the total amount to be paid by the insurance company to the policy…

Answered: The President died April 1, 2026. How…

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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Nakasiguro Company insured its president for P 5,000,000 with an annual premium, paid initially at the beginning of 2021, for P 80,000. Nakasiguro is the beneficiary. The following transactions aside from the regular premium payment, took place.

	Cash Surrender Value	Dividends Received (at year end)
2023	P 60,000	P 5,000
2024	72,000	3,000
2025	84,000	-
2026	92,000	4,000

The President died April 1, 2026.

How much is the Cash Surrender Value be reported, before any claim, when the President died?

66,000

86,000

64,000

84,000

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