Consider the following transactions for Huskies Insurance Company:

a. Equipment costing $39,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,500 per year.

b. On June 30, the company lends its chief financial officer $45,000; principal and interest at 5% are due in one year.

c. On October 1, the company receives $14,000 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.

Transaction	Net Income
a.
b.
c.
Total