Patterson Gallery sells original art work and a range of limited addition prints on canvas. Patterson purchases annual hazard insurance coverage for its gallery paying in advance each year on 1 April. The insurance purchased on 1 April 2019 cost $1.2million, but on renewal in 2020 the premium had increased to $1.6 million. Patterson's financial year ends on 31 December. Its income statement for 2020 and balance sheet at 31 December 2020 will show the following: a) $1.3m of insurance expense and $1.2m of pre-paid insurance b) $1.5m of insurance expense and $400,000 of pre-paid insurance c) $1.4m of advertising expense and $350,000 of pre-paid marketing costs d) $1.6m of insurance expense and $nil of pre-paid insurance