Data Ltd uses accrual accounting and its financial year ends on 30 June. Expenses paid in advance are treated as assets. On 1 May 2016, Data Ltd pays $480 for a one-year fire insurance policy that expires on 30 April 2017. Which of the following will appear on Data Ltds balance sheet at 30 June 2016?

Select one:

a. Prepaid insurance $480.

b. Prepaid insurance $400.

c. Prepaid insurance $80.

d. Insurance expense $80.

What is the answer to this question? and kindly show me the solutions.