In 2015, Charm Company purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary. Information regarding the policy for the year ended December 31, 2019 follows: Cash surrender value, January 1- P435,000; Cash surrender value, December 31 - P540,000;

In 2015, Charm Company purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary. Information regarding the policy for the year ended December 31, 2019 follows: Cash surrender value, January 1- P435,000; Cash surrender value, December 31 - P540,000;

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

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In 2015, Charm Company purchased a P5,000,00o life insurance policy on
its president, of which Charm is the beneficiary. Information regarding the
policy for the year ended December 31, 2019 follows: Cash surrender value,
January 1- P435,000; Cash surrender value, December 31 - P540,000;
Annual advance premium paid January 1- P200,000. During 2019,
dividends of P30,000 were applied to increase the cash surrender value of
the policy. What amount should Charm report as life insurance expense for
2019? *

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