Silver Company purchased a 2,000,000 ordinary life insurance policy on its president and the company is the named beneficiary. Additional data are available for the year ended December 31, 2020. Cash surrender value: January 1 - 87,000; December 31 - 108,000 Annual premium paid in advance on January 1 - 40,000 Dividend received on July 1 - 6,000 How much is Silver Company’s life insurance expense for 2020? A. 40,000 B. 34000 C. 19,000 D. 13,000
Silver Company purchased a 2,000,000 ordinary life insurance policy on its president and the company is the named beneficiary. Additional data are available for the year ended December 31, 2020. Cash surrender value: January 1 - 87,000; December 31 - 108,000 Annual premium paid in advance on January 1 - 40,000 Dividend received on July 1 - 6,000 How much is Silver Company’s life insurance expense for 2020? A. 40,000 B. 34000 C. 19,000 D. 13,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 25E
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Silver Company purchased a 2,000,000 ordinary life insurance policy on its president and the company is the named beneficiary. Additional data are available for the year ended December 31, 2020.
Cash surrender value: January 1 - 87,000; December 31 - 108,000
Annual premium paid in advance on January 1 - 40,000
Dividend received on July 1 - 6,000
How much is Silver Company’s life insurance expense for 2020?
A. 40,000
B. 34000
C. 19,000
D. 13,000
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