During the current year Dim Corp. found it expensed all of its capital expenditures last year. Therefore, the following were overstated or understated on last year's financial statements? 1) Net Incoome - overstated; Depreciation Expense - understated; Income tax expense - 2) overstated Net Incoome understated; Depreciation Expense understated; Income tax expense- overstated 3) Net Incoome - understated; Depreciation Expense - overstated; Income tax expense- 4) overstated Net Incoome understated; Depreciation Expense- understated; Income tax expense - understated