On May 1, a two-year insurance policy was purchased for 33,600 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? Multiple Choice 1,400 9,800. 12,600. 33,600.

## Step 1: Determine the total duration of the insurance policy### The insurance policy is for two years.## Step 2: Calculate the monthly insurance expense### Divide the total cost of the insurance policy by the number of months in two years: per month.## Step 3: Calculate the insurance expense for the first year### Multiply the monthly expense by the number of months in the first year (May 1 to December 31 is 8 months): .