How much has DEF Co. paid for insurance in the current year after one year has elapsed?

To determine how much DEF Co. has paid for insurance in the current year after one year has elapsed, it is essential to consider the context of the choices provided. If the correct response is that DEF Co. has paid $0 for insurance, it suggests there may have been an allowance or policy that resulted in no premium payments being made within that specific timeframe or that there were no insurance costs incurred by the company during the year.

In many accounting scenarios, businesses may opt for various policies that allow them to defer payments. It’s also possible that insurance costs are prepaid and recognized in the previous period rather than the current year, leading to no further expenses being recorded for the insured period.

Ultimately, the consideration that DEF Co. incurred no insurance payments within the specified timeframe implies the absence of an active insurance policy or a decision not to utilize insurance, thereby making the amount paid for insurance during the current year effectively $0.