Western Foods purchased a 4,000,000 life insurance policy on the company president. The annual premium that was paid on January 1, 2020, the beginning of the third policy year, amounted to P96,000. In 2020, cash surrender value increased by P7,000 and dividends from the insurance company credited against the premiums due for the year amounted to P1,500. What was the amount of the life insurance expense for 2020? A.87,500 B. 89,000 C. 90,500 D. 101,500
Western Foods purchased a 4,000,000 life insurance policy on the company president. The annual premium that was paid on January 1, 2020, the beginning of the third policy year, amounted to P96,000. In 2020, cash surrender value increased by P7,000 and dividends from the insurance company credited against the premiums due for the year amounted to P1,500. What was the amount of the life insurance expense for 2020? A.87,500 B. 89,000 C. 90,500 D. 101,500
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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Western Foods purchased a 4,000,000 life insurance policy on the company president. The annual premium that was paid on January 1, 2020, the beginning of the third policy year, amounted to P96,000. In 2020, cash surrender value increased by P7,000 and dividends from the insurance company credited against the premiums due for the year amounted to P1,500.
What was the amount of the life insurance expense for 2020?
What was the amount of the life insurance expense for 2020?
A.87,500
B. 89,000
C. 90,500
D. 101,500
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