Amando took out a life insurancepolicy for P1,000,000.00 naming hiswife as beneficiary. Under the termsof the policy, the insurer will payAmando the amount ofP1,000,000.00 after the 2Oth year ofthe policy, or his beneficiary, shouldhe die before that date. Amandooutlived the policy and receivedP1,000,000.0O. The premiums paidon the policy was P250,000.00. Howmuch is the taxable income? *P1,000,000P750,000O P250,000Zero

Answer: Any insurance proceeds that are received by heirs or the beneficiary in terms of death of…

Answered: Amando took out a life insurance policy…

Business

Accounting

Amando took out a life insurance policy for P1,000,000.00 naming his

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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Question

Amando took out a life insurance
policy for P1,000,000.00 naming his
wife as beneficiary. Under the terms
of the policy, the insurer will pay
Amando the amount of
P1,000,000.00 after the 2Oth year of
the policy, or his beneficiary, should
he die before that date. Amando
outlived the policy and received
P1,000,000.0O. The premiums paid
on the policy was P250,000.00. How
much is the taxable income? *
P1,000,000
P750,000
O P250,000
Zero

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