In 2015, Maine Corporation bought a $5,000,000 life insurance policy on its president, of which...
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In 2015, Maine Corporation bought a $5,000,000 life insurance policy on its president, of which Maine Corporation is the beneficiary. Information regarding the policy for the year ended December 31, 2020 follows: Cash surrender value, 1/1/2020: $435,000 Cash surrender value, 12/31/2020: $540,000 Annual advance premium paid 1/1/2020: $200,000. During 2020, dividends of $30,000 were applied to increase the cash surrender value of the policy. How much should be the life insurance expense for 2020? a. 65,000 b. 95,000 c. 105,000 d. 200,000 e. none of the above
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