On December 30, 2006, Gannett purchases a general liability insurance agreement for the period of January 1, 2007 to December 31, 2007. The insurance agreement costs Gannett $120,000 and was paid on...

On December 30, 2006, Gannett purchases a general liability insurance agreement
for the period of January 1, 2007 to December 31, 2007. The insurance agreement
costs Gannett $120,000 and was paid on January 1, 2007. How will Gannett record
the purchase of the insurance contract for the fiscal period of December 2006?