Bill Buyer purchased a property from Sam Seller and assumed Sam's mortgage. Sam had already paid the insurance premium for last year prior to closing. The closing took place on January 15 of last year. How would the premium have been prorated?
A) It shows as a credit to Bill and a debit to Sam.
B) It shows as a debit to Bill and a credit to Sam.
C) It is not charged to either one since Sam paid it outside of closing.
D) It shows as a credit to Sam and a debit to the broker.