The premium on a three-year insurance policy expiring on December 31, 2011, was paid in total on January 2, 2009.

<p><em><strong>If the company has a6-month operating cycle, then on December31,2009, the prepaid insurance reported on the balance sheet as a current asset would be for:</strong></em></p> <p><em><strong>a)6 months.</strong></em></p> <p><em><strong>b)12 months.</strong></em></p> <p><em><strong>c)18 months.</strong></em></p> <p><em><strong>d)24 months.</strong></em></p> <p> </p> <p><em><strong>CPA Adapted</strong></em></p>