Smith Corporation purchased a one-year insurance policy in January 2020 for $48,000. The insurance policy is in effect from March 1, 2020 through February 28, 2021. If the company neglects to make the proper year-end adjustment for the expired insurance: net income and assets will be understated by $35,000. net income and assets will be overstated by $35,000. net income and assets will be understated by $7,000. O net income and assets will be overstated by $40,000