Question 2 (2 points)

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Smith Corporation purchased a machine for $15,000 in October, 2020. If Smith Corp. recorded the purchase price of the machine an expense, which of the following would be true?

Question 2 options:

a)	Net Income would be overstated as of 10/31/20

b)	Net Income would be understated as of 10/31/20

c)	Smith Corp. would have recorded the transaction correctly

d)	Assets would be overstated as of 10/31/20