Nash's Trading Post, LLC purchased a one$-$year insurance policy in January $2016$ for $$26640.$ The insurance policy is in effect from

March $2016$ through February $2017.$ If the company neglects to make the proper year$-$end adjustment for the expired insurance:

net income and assets will be understated by $$4440.$

net income and assets will be overstated by $$22200.$

net income and assets will be understated by $$22200.$

net income and assets will be overstated by $$4440.$