On April 1, 2018, ABC Corporation exchanged 1,000 shares of its $5 par common stock for equipment. The stock is traded on the NYSE and on the date of the acquisition was trading at $80 per share. The equipment had a book value of $40,000 on the seller's books and a fair value of $85,000. ABC recorded the Equipment at fair value. The equipment has a 5-year life, no salvage and ABC uses the straight-line method to depreciate this class of equipment.

Determine the errors on the following financial statement components due to this error as of December 31, 2018.

Assets Liabilities Stockholder's Equity Net Income

*Use O for Overstated, U for Understated, or NE for No Effect. Do not use $ signs or commas and do not space between the O/U and the dollar amount. For example, if your answer is Understated for $1,000, enter your answer as U1000.