William, Inc.purchased a $400, 000 life insurance policy on the company president on January 1, 2010.The premium that was paid on January 1 amounted to $11, 600.In the first year, cash surrender value increased by $900 and dividends received by William from the insurance company for the year amounted to $300.What was William's insurance expense for 2010?

Question

Quizplus · Accepted Answer

The insurance expense for William, Inc. for 2010 is calculated by taking the premium paid ($11,600) and subtracting both the increase in cash surrender value ($900) and the dividends received ($300). Thus, the insurance expense is $11,600 - $900 - $300 = $10,400.