Hormonal Company has P1,000,000 ordinary life insurance policy on the president. The policy year and accounting...

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Hormonal Company has P1,000,000 ordinary life insurance policy on the president. The policy year and accounting year coincide. The entity provides the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid-.January 1 Dividend received-April 1 The entity is the beneficiary under the life insurance policy. The insured died on January 2. 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement of insurance policy is received on February 28, 2021 What is the life insurance expense on December 31, 2020? Computation: Premium paid- January Less: Dividend received 25,000 Increase in cash surrender value (290,000 - 245,000) 45,000 Life insurance expense 245,000 290,000 150,000 25.000 Refer to the information in Question recorded on February 28, 2021? 150,000 70.000 80,000 What is the gain on life insurance settlement Hormonal Company has P1,000,000 ordinary life insurance policy on the president. The policy year and accounting year coincide. The entity provides the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid-.January 1 Dividend received-April 1 The entity is the beneficiary under the life insurance policy. The insured died on January 2. 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement of insurance policy is received on February 28, 2021 What is the life insurance expense on December 31, 2020? Computation: Premium paid- January Less: Dividend received 25,000 Increase in cash surrender value (290,000 - 245,000) 45,000 Life insurance expense 245,000 290,000 150,000 25.000 Refer to the information in Question recorded on February 28, 2021? 150,000 70.000 80,000 What is the gain on life insurance settlement

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To calculate the gain on life insurance settlement received on February 28 2021 we need to consider ... View the full answer