Ambiance corporation began operations on january 1, year 1. during the month of january, the company operated without insurance coverage. then, on february 1, the company paid the $4,800 premium on a two-year insurance policy with benefits beginning on that date. the company uses the accrual basis. how much insurance expense will be reported on the company's income statement for the year ended december 31, year 1?

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.