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Tamarisk, Inc, purchased a one - year insurance policy in February 2 0 2 4 for $ 4 3 6 8 0 . The insurance

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.
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