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?
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
Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
