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Oriole Company purchased a one - year insurance policy in January 2 0 2 4 for $ 4 0 3 2 0 . The insurance

Oriole Company purchased a one-year insurance policy in January 2024 for $40320. The insurance policy is in effect from March 2024 through February 2025. If the company neglects to make the proper December 31,2024 year-end adjustment for the expired insurance
net income and assets will be understated by $6720.
net income and assets will be understated by $33600.
net income and assets will be overstated by $33600.
net income and assets will be overstated by $6720.
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