Question
On January 2, 2019, the corporation insured the life of its president for P2,000,000. The corporation was designated as the beneficiary of the policy. The
On January 2, 2019, the corporation insured the life of its president for P2,000,000. The corporation was
designated as the beneficiary of the policy. The annual premium was P80,000. The policy carried the following
cash surrender values:
December 31, 2019 -
December 31, 2020 -
December 31, 2021 60,000
December 31, 2022 85,000
December 31, 2023 117,500
December 31, 2024 170,000
The president died on March 1, 2022. Prepare entries related to the life insurance for the year 2019-2022. What
is the gain on life insurance settlement?
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Federal Taxation 2017 Comprehensive
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
30th Edition
134420640, 978-0134421438, 134421434, 978-0134420646
