please explain

18) Newell Corp. has acquired land and paid $500 as a brokerage commission to acquire the land. However, the company's accountant has recorded the $500 as a revenue expenditure. What is the effect of this error? A) Revenue is overstated by $500 B) Liabilities are overstated by $500 Assets are overstated by $500. Net Income is understated by $500. ni