Eve's Apples opened business on January 1, 20X8, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve's prepaid insurance as of December 31, 20X8?
a) $9,000.
b) $18,000.
c) $30,000.
d) $48,000.