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A company has a fiscal year-end of December 31: (1) on October 1, $31,000 was paid for a one-year fire insurance policy: (2)
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1 Insurance Net income will increase by $    7,750
2 Interest Net income will decrease by $ (1,015)
3 Depreciation Net income will increase by $ 15,800
Net income will be higher by $ 22,535

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