Chapter 1 Problem 13-21 to 23
Problem 13-21 Answer C
Premium paid – January 1 100,000
Less: Dividend received 15,000
Increase in cash surrender value (270,000 – 245,000) 25,000 40,000
Life insurance expense for 2008 60,000
Problem 13-22 Answer D
Premium paid 200,000
Less: Increase in cash surrender value (540,000 – 435,000) 105,000
Life insurance expense 95,000
The dividend of P30,000 is not deducted anymore because it is already part of the increase in cash surrender value.
Problem 13-23 Answer A
Sinking fund cash 500,000
Sinking fund securities 1,000,000
Accrued interest receivable 50,000
Plant expansion fund 600,000
Cash surrender value 150,000
Land held for capital appreciation 3,000,000
Advances to subsidiary 200,000
Investment in joint venture 2,000,000
7,500,000
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