Answer:
D. $337.50.
Explanation:
The computation of the insurance expense for the year ended would be shown below:
= Premium amount - nine-month premium
where,
Premium amount is $1,350
And, the nine-month premium would be
= Premium amount × number of months ÷ (total number of months in a year)
= $1,350 × (9 months ÷ 12 months)
= $1,012.50
The nine-month is calculated from the April 1 to December 31
Now put these values to the above formula
So, the value would equal to
= $1,350 - $1,012.50
= $337.50
