Final answer:
option c,The insurance expense for 2024 is calculated by adding the beginning prepaid insurance to the amount paid during the year, then subtracting the ending prepaid insurance. The insurance expense for 2024 was $101,400.
Step-by-step explanation:
The student is asking about determining the insurance expense for a company based on prepaid insurance at the beginning and end of the year and the amount paid for insurance during the year. To calculate the insurance expense for the year 2024, we need to account for the prepaid amounts in addition to the payments made during the year. We start with the prepaid insurance balance at the beginning of the year, add the amount of insurance paid during the year, and then subtract the ending prepaid insurance balance to find the insurance expense.
- Beginning Prepaid Insurance: $54,400
- Plus: Insurance Paid in 2024: $92,000
- Subtract: Ending Prepaid Insurance: $45,000
The formula to find the insurance expense is as follows: Beginning Prepaid Insurance + Insurance Paid During the Year - Ending Prepaid Insurance = Insurance Expense. Using this formula, the calculation is $54,400 + $92,000 - $45,000 = $101,400. Therefore, the insurance expense for 2024 was $101,400, which corresponds to option C.