Ally Insurance Company marketed 1,500 policies on June 24, 2021 payable in 10 years with monthly amortization of P3,500 per policy. On July 24, 2021 collected the 1st amortization on 1,500 policies. Mo Reinsurance Company purchases on July 30, 2021 the 25% of the 1,500 policies own by Ally Insurance Company and give P250 reinsurance commission per policy acquired. On August 24, 2021 collected monthly amortization on 1,500 policies including the 25% sold to Mo Reinsurance Company. Same collection happens on September 24, 2021. For the three-month period, Ally Insurance Company incurred marketing expenses totaling to P 750,250 and commission expense of P 250,500. It is a policy of Ally Insurance Company that upon sign up. policyholder will pay the initial monthly amortization. Compute the following 

1. Net income of Ally Insurance Company for the four-month period-June to September, 2021. 

2 Net income of Mo Reinsurance Company for the two-month period-August to September, 2021 

3, How much is the offsetting amount between the two companies?

Answer rating: 100% (QA)

1 Ally insurance company net income Income for the month of July Income from sale of 1500 policies 1 View the full answer