Iris Corporation paid $3,600 and purchased a two-year insurance policy on September 1, 2021. The policy period starts September 1, 2021 and runs until August 31, 2023. Iris Corporation's fiscal year ends December 31. The company records adjusting entries only at year end

1. What balance is shown for Prepaid Insurance on Iris Corporations December 31, 2022 Balance Sheet?
   1. $3,600
   2. $3,000
   3. $1,800
   4. $1,200
   5. $600