Gregorio Corp. purchased a P5,000,000 ordinary life insurance policy on its president. Gregorio is thebeneficiary under the policy. The policy year and Gregorio' accounting year coincide. Additional dataavailable for the year ended December 31, 2023 are as follows:Cash surrender value, January 1Cash surrender value, December 31Annual advance premium paid January 1Dividend received on July 1What amount should be reported as life insurance expense for 2023?P228,000290,000120,00015,000

Formula: Life Insurance Expenses = Beginning Cash surrender value + Annual advance premium paid Jan…

Answered: Gregorio Corp. purchased a P5,000,000…

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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pptm ^ e to search 4 E D +₁ C At December 31, 2020, Carla Corporation owes $506,600 on a note payable due February 15, 2021. 4 (a) If Carla had restructured the note on December 15, 2020, such that Carla has the contractual right to defer payment of $253,300 of the note until February 15, 2022, how much of the $506,600 should be reported as a current liability at December 31, 2020? F The amount to be reported as a current liability at December 31, 2020 $ R eTextbook and Media Xa *- $ Save for Later (b) ACC341-2022-Ho...xlsx V % 5 T G O Et n 21 ** DK B A 6 Y music 2.jpeg H & 7 N Kyll U J * 00 0 M I PS K F10 ( 9 W O Alt F11 O L 888 F12 P A Attempts: 0 of 3 used Submit Answer Home PrtSc { ? End Ctrl 40°F Mostly cloudy 1904 Insert } Delete Backspace PgUp Ent
Interview Notes Michael is 49 years old and files as single. His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winningsof $1,000. Michael would like to itemize his deductions this year. Michael brings documentation for the following expenses: $8,200 Hospital and doctor bills $700 Contributions to Health Savings Account (HSA) $2,500 Long Term Care Insurance premiums before age limitation applied $3,400 State withholding (higher than Michael’s calculated state sales tax deduction) $300 Personal property taxes based on value of vehicle $400 Friend’s personal GoFundMe campaign $275 Cash contributions to the Red Cross $100 Fair market value of clothing in good condition donated to the SalvationArmy (Michael purchased clothing for $800) $7,500 Mortgage interest $820 Real estate tax $230 Mortgage Insurance Premiums (PMI) on a home he purchased in 2017. $150 Homeowners association fees $2,000 Gambling losses 11. If Michael chooses to itemize, which of the following…
Crane Corporation is a publicly traded company and follows IFRS. On December 31, 2022, Crane's financial records indicated the following information related to the company's defined benefit pension plan Defined Benefit Obligation Pension Plan Assets $1,350,000 1.510,000 Crane Corporation's actuary provided the following information on December 31, 2023: Current year service cost $84,000 Prior service cost, granted Jan 1, 2023 189,000 Employer contributions for the year 88,000 Benefits paid to retirees 28,000 Expected return on assets 5% Actual return on assets Discount rate 6% 5% Prepare a pension worksheet for Crane Corporation for 2023. Balance, January 1, 2023 Current Service Cost Prior Service Cost Net Interest/Finance Cost Asset Remeasurement Gain/Loss Employer Contributions to Pension Fund Benefits Paid to Retirees from Pension Fund Defined Benefit Expense Entry-2023 Net Funding Entry Balance, December 31, 2023 General Journal Entries Annual Defined Remeasurement Gain/Loss (OCI)…
A postretirement plan promises health care coverage for all employees who retire after age 62 and complete service of 15 years. As of january 1, 2020, one 50- year old participant has rendered services for 8 years, and is expected to retire at age 65. The following amounts pertain to the participants benefits. Present value of postretirement benefit cash flow stream ut the date of retirement s30.000 Present value of postretirement cash flow stream an jan. 1, 2020 $4.000 What is the value of the accumulated postretirement benefit obligation (APBO) on January 1, 20207 Select one a. $2,133 b. $1.391 C.$1,600 d. $12.000
A property/casualty insurer sold a one-year insurance policy for $480 on July 1. The insurer incurred $144 in underwriting expenses for the policy. Disregarding losses, what is the insurer's pre-tax net income from this policy in the year the policy was written under statutory accounting rules? A-$144 B $ 96 C $168 D $236
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost PBO $ 300 48 Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2025 24 (2) (20) $ 350 PBO $ 350 38 28 5 (16) Beginning of 2024 Return on plan assets, 7.5% (10% expected) $ 405 Cash contributions Less: Retiree benefits End of 2024 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Beginning of 2025 Return on plan assets, 15% (10%) expected)…
In 2019, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based on the bond's yield to maturity, amortization of the $20,000 discount was $1,512 in 2019, $1,480 in 2020, and $295 in 2021. Mrs. Ulm sold the bond for $84,180 in March 2021. Assume the taxable year is 2021. Required: a. What are her tax consequences in each year assuming that she bought the newly issued bond from the corporation? b. What are her tax consequences in each year assuming that she bought the bond in the public market through her broker? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What are her tax consequences in each year assuming that she bought the bond in the public market through her broker? 2020 Ordinary Income Amount $ 0 2021 Ordinary Income $ 893 2021 Long-term capital gain $ 893 2019 Ordinary Income $ 0
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Howard contributed $3,000 to his 401(k) during 2021. For the Saver's Credit, which distribution would reduce his eligible contribution amount? $500 distribution from traditional IRA on January 1, 2017. $750 distribution from 401(k) on April 15, 2018. $1,000 distribution from 403(b) on December 31, 2019. $1,500 distribution from 401(k) on November 1, 2023.
Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2020: Home acquisition debt interest: $15,000Credit card interest: $5,000Home equity loan interest (used for home improvement): $6,500Investment interest expense: $10,000Mortgage insurance premiums (PMI): $1,000 With 2020 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal and the home equity loan principal combined are less than $750,000.

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