Jelline Company insured the life of its president for P2,000,000, the entity being the beneficiary of an ordinary life insurance policy. The annual premium is P80,000 and the policy is dated January 1, 2019. The entity reported the following cash surrender value: December 31, 2021 15,000 December 31, 2022 19,000 The president died on October 1, 2022 and the policy is settled on December 31, 2022. What amount should be reported as gain on life insurance settlement for 2022? A. 1,962,000 B. 2,000,000 C. 1,961,000 D. 1,981,000

Jelline Company insured the life of its president for P2,000,000, the entity being the beneficiary of an ordinary life insurance policy. The annual premium is P80,000 and the policy is dated January 1, 2019. The entity reported the following cash surrender value: December 31, 2021 15,000 December 31, 2022 19,000 The president died on October 1, 2022 and the policy is settled on December 31, 2022. What amount should be reported as gain on life insurance settlement for 2022? A. 1,962,000 B. 2,000,000 C. 1,961,000 D. 1,981,000

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 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...

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