On December 31, year 8, a company, paid in advance for a 3-year insurance policy, covering year 9 through year 11. The policy cost was $1,200. If the policy had been purchased on a year-to-year basis, the total cost would have been $1,800 at current rates. The company's normal operating cycle is 9 months long. How will the $1,200 be reported on the balance sheet dated December 31, year 8?