Dennis Manufacturing purchased a patent for a bicycle. The patent had a remaining legal life of $3$ years, however Dennis thought the bike would be popular for $20$ years, so they amortized the patent's cost over $20$ years. How will this affect the accuracy of Dennis Manufacturing's financial statements?

Net income and assets will be overstated.

Net income will be understated, and assets will be overstated.

Net income and assets will be understated.

Net income will be overstated, and assets will be understated.