An Enterprise Fund that operates on a calendar year basis pays $18,000 for a three-year insurance policy on January 1, 2008. In its financial statements for the year ended December 31, 2008, the Enterprise Fund should report:

a. an expense of $6,000; and an asset of $12,000

b. an expense of $18,000

c. an expense of $12,00; and an asset of $6,000

d. an asset of $18,000; and an expense of $6,000