insurance for the first year of operation of $6,000. At what amount should the equipment be recorded on the balance sheet prior to recording depreciation expense? (5 points) 7. Shehata Coffee Shop acquired another business this year and recorded $200,000 of goodwill on the balance sheet. What journal entry, if any, related to amortization will be recorded in Year 1? 3 points 8. Assume that 2 separate errors affected Shehata Coffee Shop in 2020: beginning inventory was overstated by $17,000 and the ending inventory was overstated by $23,000. What is the impact on net income in 2020 (ignore taxes). Select the correct answer below; clearly show your work for credit; 4 points a. Overstated by $40,000 b. Overstated by 6,000 Overstated by 23,000 d. Understated by $40,000 e. Understated by $23,000 c. 3