3. On January 2, 2019, the corporation insured the life of its president for P2,000,000. The corporation was designated as the beneficiary of the policy. The annual premium was P80,000. The policy carried the following cash surrender values: December 31, 2019 December 31, 2020 December 31, 2021 60,000 85,000 117,500 170,000 December 31, 2022 December 31, 2023 December 31, 2024 The president died on March 1, 2022. Prepare entries related to the life insurance for the year 2019-2022. What is the gain on life insurance settlement?

3. On January 2, 2019, the corporation insured the life of its president for P2,000,000. The corporation was designated as the beneficiary of the policy. The annual premium was P80,000. The policy carried the following cash surrender values: December 31, 2019 December 31, 2020 December 31, 2021 60,000 85,000 117,500 170,000 December 31, 2022 December 31, 2023 December 31, 2024 The president died on March 1, 2022. Prepare entries related to the life insurance for the year 2019-2022. What is the gain on life insurance settlement?

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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