Consider the following transactions for Huskies Insurance Company:

Income taxes for the year total $$42,000$ but won$$t be paid until next April $15.$

On June $30,$ the company lent its chief financial officer $$50,000$; principal and interest at $7\%$ are due in one year.

On October $1,$ the company received $$16,000$ 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.