On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an annual premium of P 150,000 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 year is as follows: 2020- P 0 2021- 0 2022- 50,000 2023 - 68,000 2024- 98,000 The president died on April 1,2023 and ABC Company's accounting year is the calendar year. How much is the life insurance expense for the year ended December 31,2023?

On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an annual premium of P 150,000 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 year is as follows: 2020- P 0 2021- 0 2022- 50,000 2023 - 68,000 2024- 98,000 The president died on April 1,2023 and ABC Company's accounting year is the calendar year. How much is the life insurance expense for the year ended December 31,2023?

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 25P

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