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What amount of life insurance expense should company report

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Reference no: EM132982562

Question - On January 2, 2016, a company purchased a P4,000,000 ordinary life insurance policy on its president.

Additional data for the year 2019 are:

Cash surrender value, January 1 P200,000;

Cash surrender value December 31, P220,000;

Annual insurance premium paid on January 1, 2019, P80,000;

Dividend received on August 1, P10,000.

The company is the beneficiary under the life insurance policy. What amount of Life Insurance Expense should the company report in its December 31, 2019 profit or loss?

Reference no: EM132982562

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