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On April 30, 2016, Rudolph Inc. purchased a three-year insurance policy with a cash payment of...

On April 30, 2016, Rudolph Inc. purchased a three-year insurance policy with a cash payment of $ 23,400. Coverage began immediately. What is the amount of Insurance Expense relating to this insurance policy that will be reported for the year ended December 31, 2016?

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Expert Solution

What is the amount of Insurance Expense relating to this insurance policy that will be reported for the year ended December 31, 2016?

April 30, 2016 to December 31, 2016 is 8 months

Insurance Expense = 23400 * 8 / 36 months = $ 5200

Answer - $ 5200

ekkarill92 answered 2 years ago
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