8, KIKO Company purchased P5,000,000 life insurance policy on its president and chief executive officer, of which KIKO Company is the beneficiary. Information regarding this policy for 2021 is as follows: Cash surrender value, January 1 P100,000 Annual premium paid on Jnauary 1 200,000 Dividends earned on the policy 20,000 The dividends were applied to increase the cash surrender value. If the life insurance expense reported by KIKO Company in 2021 was P160,000, what is the cash surrender value on December 3
8, KIKO Company purchased P5,000,000 life insurance policy on its president and chief executive officer, of which KIKO Company is the beneficiary. Information regarding this policy for 2021 is as follows: Cash surrender value, January 1 P100,000 Annual premium paid on Jnauary 1 200,000 Dividends earned on the policy 20,000 The dividends were applied to increase the cash surrender value. If the life insurance expense reported by KIKO Company in 2021 was P160,000, what is the cash surrender value on December 3
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
In 2018, KIKO Company purchased P5,000,000 life insurance policy on its president and chief executive officer, of which KIKO Company is the beneficiary. Information regarding this policy for 2021 is as follows:
Cash surrender value, January 1 P100,000
Annual premium paid on Jnauary 1 200,000
Dividends earned on the policy 20,000
The dividends were applied to increase the cash surrender value.
If the life insurance expense reported by KIKO Company in 2021 was P160,000, what is the cash surrender value on December 31?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education