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Catrina Corporation took out a new insurance policy on their recently built offices. The policy cost...

Catrina Corporation took out a new insurance policy on their recently built offices. The policy cost $160,000 and covered 24 months, from Oct 1, 20X1 to the end of Sep 20X3. When Catrina prepares its income statement for the year ended 20X1, what amount will be shown as insurance expense? Enter your response as a whole number, no commas, no dollar signs.

Solutions

Expert Solution

Insurance expense for the year

= 160,000 * 3 months/24 months

= 160,000*(3/24)

= 20,000

ekkarill92 answered 3 years ago
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