Salem Corporation purchased a one-year insurance policy in January 2016 for $51,000. The insurance policy is in effect from April 2016 through March 2017. If the company neglects to make the proper year-end adjustment for the expired insurance Select one: a. net income and assets will be understated by $8,500. b. net income and assets will be overstated by $38,250 c. net income and assets will be overstated by $8,500. d. net income and assets will be understated by $38,250