A company uses the periodic inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000; the ending inventory for this period is correct. a. How will the amounts affect Assets? Overstated or Understated or Correct? Kinney Company purchased a truck for $75,366. The company expected the truck to last four 100,000 miles, with an estimated residual value of $18,000 at the end of that time. years or During the second year the truck was driven 27,000 miles. Compute the depreciation for the second year under Units of Activity. Round to the nearest whole dollar, needed. DO NOT PUT A DOLLAR SIGN IN YOUR ANSWER use a comma if Your