1. Equipment costing $30,000 Is purchased at the beginning of the year for cash. Depreclation on the equipment is $5,000 per year. 2 On June 30, the company lends Its chief financlal officer $30,000; principal and Interest at 5% are due In one year. 3. On October 1, the company recelves $8,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited Required: Indicate by how much net income in the Income statement is higher or lower if the adjustment is not recorded. (Do not round Intermedlate calculations.) Transaction Net Income 5,000 Higher 1 2. 3. Total Lower