Compute the total recovery of loss profits to be recognized

Reference no: EM132722359

Question - Guilbert is worried that his entire potato plantation which is expected to yield P400,000 income will be totally devastated by bad weather conditions. He obtained a P300,000 crop insurance cover for P30,000. Just before the harvest, a rare frost totally destroyed Guilbert's plantation. The insurance company paid the policy proceeds. Compute the total recovery of loss profits to be recognized by Guilbert as income.

a. P0

b. P100,000

c. 300,000

d. P370,000

Reference no: EM132722359

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