On January 1, 2019, ABC Co

Accounting Feb 20, 2022

On January 1, 2019, ABC Co. insures the life of its president for PHP 1,000,000. ABC Co. is the beneficiary. Annual insurance premium of Php 20,000 is payable at the beginning of each year. Information on the cash surrender value from the insurance policy is shown below:

Policy Year Cash surrender value

Dec. 31, 2019 -

Dec 31, 2020 -

Dec. 31, 2021 21,000

Dec. 31, 2022 28,000

Dec. 31, 2023 40,000

How much is the insurance expense for the year 2021?