On december 31, 2017, coolwear, inc. had a balance in its prepaid insurance account of $48,400. during 2018, $86,000 was paid for insurance.
at the end of 2018, after adjusting entries were recorded, the balance in the prepaid insurance account was 42,000. insurance expense for 2018 would be:

(a) $92,400.

(b) $6,400.

(c) $134,400.

(d) $86,000.

Insurance expense will be $92400

So option (a) will be correct option

Explanation:

We have given balance in prepaid insurance = $48400

Insurance paid in 2018 = $86400

Ending prepaid insurance balance = $42000

We have to find the insurance expense for 2018

Insurance expense for 2018 is given by

Insurance expense = $48400+$86400-$42000 = $92400

So option (a) will be the correct answer

answer; i believe that the correct answer is (strain);

answer; the landlord can sue the renter,and the renter loses the security deposit;