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…

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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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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