On October $1,2020,$ Jayhawk Company paid $$9,600$ for a two$-$year insurance policy on its building. Jayhawk's fiscal year ends on December $31.$ Which amounts should the Company report for Prepaid Insurance and Insurance Expense on its financial statements for $2020?$

Question $16$ options:

Prepaid insurance $$1,200$ Insurance expense $$8,400$

Prepaid insurance $$2,400$ Insurance expense $$7,200$

Prepaid insurance $$8,400$ Insurance expense $$1,200$

Prepaid insurance $$7,200$ Insurance expense $$2,400$