On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an annual premium of P 150,000 payable in advance at the beginning of each year. The company is the designated beneficiary and has the right to cancel the policy at its own option The cash surrender value of the policy at the end of each year is as follows: 2020- PO 2021- 0 2022- 50,000 2023 - 68,000 2024- 98,000 The president died on April 1,2023 and ABC Company's accounting year is the calendar year. How much is the life insurance expense for the year ended December 31,2023? * O P 27,500 O P 19,500 O P 94,500 O P 150,000
On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an annual premium of P 150,000 payable in advance at the beginning of each year. The company is the designated beneficiary and has the right to cancel the policy at its own option The cash surrender value of the policy at the end of each year is as follows: 2020- PO 2021- 0 2022- 50,000 2023 - 68,000 2024- 98,000 The president died on April 1,2023 and ABC Company's accounting year is the calendar year. How much is the life insurance expense for the year ended December 31,2023? * O P 27,500 O P 19,500 O P 94,500 O P 150,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an
annual premium of P 150,000 payable in advance at the beginning of each year. The company
is the designated beneficiary and has the right to cancel the policy at its own option
The cash surrender value of the policy at the end of each year is as follows:
2020- PO
2021- 0
2022- 50,000
2023 - 68,000
2024- 98,000
The president died on April 1,2023 and ABC Company's accounting year is the calendar year.
How much is the life insurance expense for the year ended December 31,2023? *
O P 27,500
O P 19,500
O P 94,500
O P 150,000
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