Jelline Company insured the life of its president for P2,000,000, the entity being the beneficiary of an ordinary life insurance policy. The annual premium is P80,000 and the policy is dated January 1, 2019. The entity reported the following cash surrender value: December 31, 2021 15,000 December 31, 2022 19,000 The president died on October 1, 2022 and the policy is settled on December 31, 2022. What amount should be reported as gain on life insurance settlement for 2022? A. 1,962,000 B. 2,000,000 C. 1,961,000 D. 1,981,000

Jelline Company insured the life of its president for P2,000,000, the entity being the beneficiary of an ordinary life insurance policy. The annual premium is P80,000 and the policy is dated January 1, 2019. The entity reported the following cash surrender value: December 31, 2021 15,000 December 31, 2022 19,000 The president died on October 1, 2022 and the policy is settled on December 31, 2022. What amount should be reported as gain on life insurance settlement for 2022? A. 1,962,000 B. 2,000,000 C. 1,961,000 D. 1,981,000

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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