Adam's Produce opened business on January 1, 2020, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Adam's prepaid insurance as of December 31, 2020?

Question 10 options:

A)

$18,000

B)

$48,000

C)

$9,000

D)

$30,000