Sylar Company insured the life of its president for P1,000,000, with it being the beneficiary. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sylar Company insured the life of its president for P1,000,000, with it being the beneficiary. The annual premium is P40,000 and the policy is dated January 1, 2016. The cash surrender values are P15,000 for December 31, 2018 and P19,000 for December 31, 2019. The president died on September 30, 2019 and the policy was settled on December 31, 2019. 4. What is the gain on life insurance settlement? 5. What is the life insurance expense for 2019? 1. 2. 3. Walter Company purchased an investment property on January 1, 2016 for P2,200,000 with a useful life of 40 years. On December 2018, it had a fair value of P3,000,000 and was sold for net proceeds of P2,900,000. The cost model was used to account for the investment property. 1. What is the carrying amount of the investment property on December 31, 2018? 2. What is the gain or loss to be recognized for the year ended December 31, 2018 regarding the disposal of the property? 3. If Walter Company used the fair value method, what is the gain or loss to be recognized in 2018? Sylar Company insured the life of its president for P1,000,000, with it being the beneficiary. The annual premium is P40,000 and the policy is dated January 1, 2016. The cash surrender values are P15,000 for December 31, 2018 and P19,000 for December 31, 2019. The president died on September 30, 2019 and the policy was settled on December 31, 2019. 4. What is the gain on life insurance settlement? 5. What is the life insurance expense for 2019? 1. 2. 3. Walter Company purchased an investment property on January 1, 2016 for P2,200,000 with a useful life of 40 years. On December 2018, it had a fair value of P3,000,000 and was sold for net proceeds of P2,900,000. The cost model was used to account for the investment property. 1. What is the carrying amount of the investment property on December 31, 2018? 2. What is the gain or loss to be recognized for the year ended December 31, 2018 regarding the disposal of the property? 3. If Walter Company used the fair value method, what is the gain or loss to be recognized in 2018?
Expert Answer:
Answer rating: 100% (QA)
Lets address each question one by one Question 4 What is the gain on life insurance settlement To calculate the gain on the life insurance settlement ... View the full answer
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
Students also viewed these accounting questions
-
select a business that would like to develop new products and services in order to attain a competitive advantage in the global market. For example, a natural foods company may need to begin offering...
-
Tayna Inc. insured the life of the president $2,000,000, the entity being the beneficiary of an ordinary life policy. The annual premium is $60,000. The policy was dated January 1, 2020 and carried...
-
The refrigerator shown in the figure below steadily receives a power input of W the surroundings at a rate of Qout = 0.7 kW. 201 W Determine the rate at which energy is removed by heat transfer from...
-
What is meant by a throwaway prototype?
-
A screen is placed 1.50 m behind a single slit. The central maximum in the resulting diffraction pattern on the screen is 1.60 cm wide-that is, the two first-order diffraction minima are separated by...
-
Describe each of the components of the COSO IC-IF Model.
-
What is a land flip?
-
Eisler Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,000. The company...
-
Marty has income from the company pension plan of $71,300. Butshe also has income from CPP ($12,400) and also qualifies for thefull 2021 OAS benefit ($7421.40). Even better she receives interestinc 2...
-
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8623732/pdf/nutrients-13-03884.pdf Please read and critique this article answering the following questions in paragraph form: 1. What is the hypothesis...
-
Sheds, Inc. designs and builds sheds and outbuildings for individual customers. The company uses a job cost system and treats each customer's order as a separate job. At the beginning of January the...
-
Answer the following questions about binary search trees (BSTs). (a) Draw the final BST after inserting elements 29, 38, 13, 6, 21, 17, 25, 30, 10, 8, 32 in that order. (b) Draw the tree after...
-
Find all relative extrema of the function. (If an answer does not exist, enter DNE.) f(x)=x-12x3 relative maximum (x, y) = (DNE relative minimum (x, y) =
-
In the figure below, q = 92 = -27.0 C, and the charges are separated by d = 10.0 cm. If q is located at x = 0.00 cm, find the electric potential at the midpoint between the two charges (x = 5.00 cm)....
-
Use the method of cylindrical shells to find the volume of the solid obtained by rotating the region bounded by the curves x = 1 + y, x = 0, y = 1, and y = 2 about the x-axis. Volume =
-
An air-gap parallel plate capacitor of capacitance Co = 20 nF is connected to a battery with voltage V = 12 V. While the capacitor remains connected to the battery, we insert a dielectric (K = 2.6)...
-
Your client purchased some last-minute materials for a job. They didn't have time to record the expense in QuickBooks Online, and now the corresponding payment has appeared in their bank feed. Can...
-
A parking lot charges $3 for the first hour (or part of an hour) and $2 for each succeeding hour (or part), up to a daily maximum of $10. (a) Sketch a graph of the cost of parking at this lot as a...
-
Taylor, age 18, is claimed as a dependent by her parents. For 2017, she has the following income: $4,000 of wages from a summer job, $1,800 of interest from a money market account, and $2,000 of...
-
Jacob purchased business equipment for $56,000 in 2014 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2017 for $26,000. What is the amount and character of Jacob's...
-
Ochre Corporation's board of directors decides to distribute property to its shareholders rather than pay a cash dividend. Why might Ochre's board make this decision?
-
\(\frac{231}{490}\) Reduce the fraction to lowest terms.
-
\(\frac{750}{17,875}\) Reduce the fraction to lowest terms.
-
Convert \(\frac{25}{6}\) to a mixed number. Do the indicated conversion. If it is a repeating decimal, use the correct notation.
Study smarter with the SolutionInn App