Consider the following transactions for Huskies Insurance Company: 1. Income taxes for the year total $48,000 but won't be paid until next April 15. 2. On June 30, the company lent its chief financial officer $56,000; principal and interest at 5% are due in one year. 3. On October 1 , the company received $14,000 from a customer for a one-year property insurance policy. Deferred Revenue was credited on October 1. Required: Indicate by how much net income in the income statement is higher or lower if the adjusting entry is not recorded. (Do not round intermediate calculations.)