On April 1, a company paid the $1,800 premium on a three-year insurance policy with benefits...

On April 1, a company paid the $1,800 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 year ended December 31?

a. $1,350.00.

b. $450.00.

c. $600.00.

d. $1,800.00.

e. $50.00.

Expert Solution

b. $450.00.

Amount of the insurance expense = $1,800 × 9/36

Amount of the insurance expense = $450

ekkarill92 answered 2 years ago

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