Answer:
Net income is overstated by $28,000.
Explanation:
As the company forget to make the adjustment entry it didn't recognize any expense for the expired insurance.
From September to December 31th 4 month of insurance has expired:
42,000 x 4 month/6 months = 28,000 insurance expense
as the expense weren't post the income statement is overstated along with the assets of the company as it doesn't have a prepaid amount for 42,000 but for 14,000
 
        
             
        
        
        
Answer:
conflict of loyalty   
Explanation:
In simple words, conflict of loyalty refers to a specific type of situation  in which an individual faces a conflict of interest due to having loyalty towards two different parties which have different goals and objectives. 
This scenario usually happens when someone in authority has to make a decision that can affect party he or she have personal relation or with the other party with with which that individual have a professional relation. 
As per the modern theories, under such scenarios, individual in authority should favor professional relations over personal relations. 
 
        
             
        
        
        
Answer
the correct answer is 
Reduce taxes by $5.56 billion dollars. Increase expenditures by $5.56 billion dollars.
 
good luck ❤