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belka [17]
3 years ago
11

a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insura

nce expense on the annual income statement for the year ended December 31
Business
1 answer:
enyata [817]3 years ago
3 0

Answer:

$337.50

Explanation:

Given that

Three year insurance policy = $1,350

So, the insurance expense on an annual basis would be

= Three year insurance policy ÷ number of years

= $1,350 ÷ 3 years

= $450

For April 1 to December 31, the months is 9 months

So, for 9 months, it would be

= $450 × 9 months ÷ 12 months

= $337.50

We assume the premium is paid on April 1

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