A company purchased a machine on January 1, 2018 for $5,500 and mistakenly recorded as expense instead of as a asset. The machine should be recorded as an asset and depreciated over 5 years with a salvage value of $500. The company uses straight-line depreciation for all of its machines. As a result of this mistake stockholders' equity for 2019 is: A. Correct B.Overstated by $1,000 Understated by $3,500 D. Understated by $4,000 E.Overstated by $6,500 O C QUESTION 9 Which of the following statements is true? All intangible assets purchased by a company are amortized over the lesser of their useful or legal life with no salvage value. Revenue expenditures are added to the book value of an asset and depreciated over the remaining life. A greater amount of depreciation will be recorded over the life of an asset if the double declining balance method of depreciation is used. Recording depreciation expense through an adjusting entry is an example of an accrual