Wildcat Corporation has a fiscal year-end of December 31. Please review the following transactions: 1. On October 1, the insurance premium of $32,000 was paid for a one-year fire insurance policy. 2. On June 30, the company advanced its chief financial officer $30,000; principal and interest at 8% on the note are due in one year. 3. Equipment costing $80,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $16,000 year. If the adjusting entries were not recorded, would net income be higher or lower and by how much? Net income would be by