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When I thought of the cash surrender value as an asset, the loan against that is a liability. Loaning that cash to the shareholder is an asset, but there is still a liability to book against the cash surrender value asset.
My mistake. You should have:
Debit CSV, at gross 280k
Debit shareholder loan, 90k
Credit insurance loan. 90k
Credit from (years of) key man life expenses. 280k
I did not know the mechanics of the loan, or of your history in booking the CSV asset. When the check was cut for the loan, both a liability against the CSV and a debit to the receivable is booked to set up the loan. The debit to cash and credit for the same check cut offset each other.
I like to report CSV net of any loans, and refer to the footnotes to explain. That could be CSV - net of 190k.
That, and the shareholder loan, are both non operating assets.
So, I agree with your classification, but I present two assets, one at 190 (net) and the other as 90.
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