Investment Property

Question 1

For life insurance policies of key officers and employees, if the enterprise is the beneficiary, how is the policy recorded?

Answer 1

As an asset of the enterprise at the cash surrender value of the policy

Question 2

When the enterprise is the beneficiary of a life insurance policy of a key officer or employee, how would the proceeds be recorded?

Answer 2

as a gain equal to the excess of the face amount of the policy over the cash surrender value at the time

Question 3

How are funds set aside to meet specific current obligations arising from operations classified?

Answer 3

as current assets. Other special purpose funds are classified as LT investments