Question
Jennica Company purchased a life insurance policy on its president, of which the entity is the beneficiary. The entity provided the following information for 2020:
Jennica Company purchased a life insurance policy on its president, of which the entity is the beneficiary. The entity provided the following information for 2020:
Cash surrender value - January 1 90,000
Cash surrender value - December 31 110,000
Annual premium paid on January 1 80,000
During 2020, dividend of P5,000 was applied to increase the cash surrender value of the policy. What amount should be reported as life insurance expense for 2020?
A. 80,000
B. 60,000
C. 55,000
D. 65,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Financial Accounting
Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey
8th Edition
73526916, 978-0073526911
