On April 1, 2009, 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, 2009?
a. $1,350.
b. $450.
c. $1,012.50.
d. $337.50.
e. $37.50.
Answer: D
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