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ABC Corporation pays $1,200 cash for an insurance policy on December 20, 2019. The policy covers the 6 months from January 2020 through June 2020.

ABC Corporation pays $1,200 cash for an insurance policy on December 20, 2019. The policy covers the 6 months from January 2020 through June 2020.
Show the journal entry ABC should record on December 20, 2019.
Briefly explain whether and how the January 2020 income statement will be affected by this transaction. Show and label any required calculations.

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