On July 1, 2021, Jazze Ltd, purchased a 3-year insurance policy and paid a premium of $60,000 Jazze has a December 31 year end. Under accrual accounting, which of the following statements best describes the effect of this transaction? O a. The balance in the prepaid insurance account on December 31, 2022 will be $40,000 The insurance expense account for the period ending December 31, 2022 will be $10,000 Ob The balance in the prepaid insurance account on December 31, 2022 will be $30,000 d. The insurance expense account for the period ending December 31, 2022 will be $20,000 The balance in the prepaid insurance account on December 31, 2022 will be $60,000