Tamarisk, Inc, purchased a one$-$year insurance policy in February $2024$ for $$43680.$ The insurance policy is in effect from March $2024$ through February $2025.$ If the company neglects to make the proper December $31,2025$ year$-$end adjustment for the expired insurance

net income and assets will be overstated by $$36400.$

net income and assets will be overstated by $$7280.$

net income and assets will be understated by $$36400.$

net income and assets will be understated by $$7280.$