On April 1, a Company Paid the $1,350 Premium on a Three-Year

Multiple Choice

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

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