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In 2015. Charm Company purchased a P5,000.000 life insurance policy on its president. of which Charm is the beneficiary. information regarding the policy for the year ended December 31, 2019 follows:
Cash surrender value, January 1 - P435,000
Cash surrender value, December 31 - P540000
Annual advance premium paid January 1 - P200,000.
Problem 1: During 2019, dividends of P30,000 were applied to increase the cash surrender value of the policy. What amount should Charm report as life insurance expense for 2019?
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