Corporation purchased a one$-$year insurance policy in January $2027$ for $$36,000.$ The insurance policy is in effect from March $2027$ through February $2028.$ If the company neglects to make the proper year$-$end adjustment for the expired insurance

Question $7$ options:

net income and assets will be understated by $$30,000.$

net income and assets will be overstated by $$30,000.$

net income and assets will be understated by $$6,000.$

net income and assets will be overstated by $$6,000$