Prepaid insurance had a balance of $300 on the companys December 31, 2010 balance sheet. On June 1, 2011, the company paid an additional insurance premium of $1,200. Prepaid insurance had a balance of $700 on the companys December 31, 2011 balance sheet. How much insurance expense will be reported on the companys income statement for the year ended December 31, 2011?

a. $400

b. $1,200

c. $500

d. $800