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ABC Corporation insures the life of its Chief Executive Officer for P3,000,000, indicating the corporation as the beneficiary of an ordinary life policy. The annual premium of P100,000 is payable every January 2nd of the year.
The policy is dated January 2, 2021, and carries the following cash surrender values:
2021 -2022 -2023 60, 0002024 70, 0002025 89, 2002026 110,800
Problem 1: The corporation follows the calendar year as its fiscal period. President dies on September 30, 2026, and policy is collected on December 2, 2026. What is the gain on life insurance policy?
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