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What amount should swift corporation recognize as gain

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Reference no: EM132839630

Swift Corporation has a $5,000,000 ordinary life insurance policy on the president. The policy year and accounting year coincide. The entity provided the following data for the year ended December 31, 2020:

Cash surrender value, January 1 - 245,000
Cash surrender value, December 31 - 270,000
Annual advance premium paid, January 1 - 100,000
Dividend received, July 1 - 15,000

Problem 1: The entity is the beneficiary under the life insurance policy. The insured died on January 2, 2021, after the payment of annual premium of $100,000 on January 1, 2021. What amount should Swift Corporation recognize as gain on insurance settlement?

Reference no: EM132839630

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