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On December 31,2012, Baxter company reported $8000 in prepaid insurance on its balance sheet. The insurer requires Baxter to pay the annual premium of $24000

On December 31,2012, Baxter company reported $8000 in prepaid insurance on its balance sheet. The insurer requires Baxter to pay the annual premium of $24000 in advance.

Required:

1. How much will Baxter recognize each month in insurance expense?

2. On what date does Baxter renew its insurance policy? Explain your answer.

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