Chilli Inc. insured the life of its president for P8,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P18,000 payable every first day of the month. The policy is dated January 1, 2017 and carries the following cash surrender values: Cash surrender End of policy year value 2017 2018 2019 125,600 2020 140,000 2021 168,200 2022 201,800 The corporation follows the calendar year as its fiscal period. The president died on June 1, 2022. How much is the gain on life insurance policy?

Chilli Inc. insured the life of its president for P8,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P18,000 payable every first day of the month. The policy is dated January 1, 2017 and carries the following cash surrender values: Cash surrender End of policy year value 2017 2018 2019 125,600 2020 140,000 2021 168,200 2022 201,800 The corporation follows the calendar year as its fiscal period. The president died on June 1, 2022. How much is the gain on life insurance policy?

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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