uadra Corp. insured its president on January 1, 2018, with a $2,000,000 life insurance policy. The annual premium was $60,000 payable on January 1 of each year. Cash surrender values increased each year by 5% of the premium paid. Dividends received in the first year (2018) amounted to $2,000 and increased by 10% each year, accruable at year-end only. Required: a. Compute insurance expense for 2019. Enter your answer as a positive amount. b. Prepare journal entries for July 1, 2020, when the president died & Quadra collected the face value of his policy plus 6 months premium