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Acme Air, Inc. is a regional air cargo carrier. Acme made a $ 4 , 5 0 0 improvement to one of its airplanes. The

Acme Air, Inc. is a regional air cargo carrier. Acme made a $

4, 500

improvement to one of its airplanes. The amount is material. If Acme's

accountant expensed this amount, which of the following statements is true?

O The entry is the correct treatment.

O The entry will improperly overstate net income for the year.

O The entry will improperly understate net income for the year.

O The entry will overstate the balance sheet for the year.

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