purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary. Information regarding the policy for the year ended December 31, 2019 follows: Cash surrender value, January 1 - P435,000; Cash surrender value, December 31 - P540,000; Annual advance premium paid January 1 - P200,000. During 2019, dividends of P30,000 were applied to increase the cash surrender value of the policy. What amount should Charm report as life insuranc
purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary. Information regarding the policy for the year ended December 31, 2019 follows: Cash surrender value, January 1 - P435,000; Cash surrender value, December 31 - P540,000; Annual advance premium paid January 1 - P200,000. During 2019, dividends of P30,000 were applied to increase the cash surrender value of the policy. What amount should Charm report as life insuranc
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2015, Charm Company purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary. Information regarding the policy for the year ended December 31, 2019 follows: Cash surrender value, January 1 - P435,000; Cash surrender value, December 31 - P540,000; Annual advance premium paid January 1 - P200,000. During 2019, dividends of P30,000 were applied to increase the cash surrender value of the policy. What amount should Charm report as life insurance expense for 2019?
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