B is corrent. ASC Topic 274 states that assets are generally presented at their estimated current values in personal financial statements. Specifically, investments in life insurance are to be valued at their cash surrender value less outstanding loans on the policy. Therefore, the investment should be reported at $75,000 ($125,000 cash value – $50,000 outstanding loan).
A is incorrect. ASC Topic 274 states that assets are generally presented at their estimated current values in personal financial statements. Specifically, investments in life insurance are to be valued at their cash surrender value less outstanding loans on the policy. Therefore, the investment should be reported at $75,000 ($125,000 cash value - $50,000 outstanding loan).
C is incorrect. ASC Topic 274 states that assets are generally presented at their estimated current values in personal financial statements. Specifically, investments in life insurance are to be valued at their cash surrender value less outstanding loans on the policy. Therefore, the investment should be reported at $75,000 ($125,000 cash value - $50,000 outstanding loan).
D is incorrect. ASC Topic 274 states that assets are generally presented at their estimated current values in personal financial statements. Specifically, investments in life insurance are to be valued at their cash surrender value less outstanding loans on the policy. Therefore, the investment should be reported at $75,000 ($125,000 cash value - $50,000 outstanding loan).
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