Current Attempt in Progress

Vaughn Corporation purchased a one$-$year insurance policy in January $2020$ for $$49200.$ The insurance policy is in effect from April $2020$ through March $2021.$ If the company neglects to make the proper year$-$end adjustment for the expired insurance

net income and assets will be understated by $$36900.$

net income and assets will be overstated by $$36900.$

net income and assets will be overstated by $$8200.$

net income and assets will be understated by $$8200.$