Oxford Company obtained a P5 million insurance policy on the life of its CEO on January 1, 2019. The company follows calendar year reporting. The annual premium on the policy is P80,000. Information about dividends and cash surrender value are given below. 2021 5,000 2022 6,000 Dividend received on December 31 Cash surrender value 42,000 Life insurance expense 69,000 Based on the above and the result of your audit, answer the following: 1. The insurance expense in 2021 is? 2. The cash surrender value at December 31, 2022 is? 3. Assuming the president dies on July 1, 2022 and the face of the policy is collected on July 31, 2022, the gain on life insurance settlement is?

Oxford Company obtained a P5 million insurance policy on the life of its CEO on January 1, 2019. The company follows calendar year reporting. The annual premium on the policy is P80,000. Information about dividends and cash surrender value are given below. 2021 5,000 2022 6,000 Dividend received on December 31 Cash surrender value 42,000 Life insurance expense 69,000 Based on the above and the result of your audit, answer the following: 1. The insurance expense in 2021 is? 2. The cash surrender value at December 31, 2022 is? 3. Assuming the president dies on July 1, 2022 and the face of the policy is collected on July 31, 2022, the gain on life insurance settlement is?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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