On July 1, a Company Paid the $2,400 Premium on a One-Year

Multiple Choice

On July 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?

A) $2,400.
B) $1,200.
C) $400.
D) $1,400.
E) $1,000.