On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What amount of the insurance expense will be reported on the annual income statement for the first year ended December 31?

A. $450.00.
B. $37.50.
C. $1,012.50.
D. $337.50.
E. $1,350.00.


Answer: D

Business

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