obiem solving R, PIPA FN Heporting, AICPA PC: 12 months, 3 months 66,000 13 = 22,000/ 12 = 122. Niagara Corporation purchased a one-year insurance policy in January 2010 for $66,000. The insurance policy is in effect from March 2010 through February 2011. If the company neglects to make the proper year-end adjustment for the expired insurance a. Net income and assets will be understated by $55,000. b. Net income and assets will be overstated by $55,000. C. Net income and assets will be understated by $11,000. d. Net income and assets will be overstated by $11,000. Ansb, SO S, BT: AP, Difficulty: Medium, TOT 4 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Reporting, AICPA PC: Problem solving 12 months, 5 months, 123. James Corporation purchased a one-year insurance policy in January 2010 for $48,000 The insurance policy is in effect from May 2010 through April 2011. If the company neglects to make the proper year-end adjustment for the expired insurance a. Net income and assets will be understated by $32,000. b. Net income and assets will be overstated by $32,000. C. Net income and assets will be understated by $16,000. d. Net income and assets will be overstated by $16,000