On May 1, 2010, Pepper Corporation Paid a $24,000 Premium

On May 1, 2010, Pepper Corporation paid a $24,000 premium for insurance coverage from May 1, 2010 through April 30, 2011. Which of the following statements is false?

A) Prepaid Insurance is a deferred expense and a current asset.
B) On May 1, Pepper debited and credited prepaid insurance and cash, respectively, for $24,000.
C) Over the term of the insurance policy, the economic benefit provided by the prepaid insurance will be gradually used up.
D) Pepper should recognize $24,000 of insurance expense in 2010.
E) On May 1, 2011, the balance of the prepaid insurance account will be $0.