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Effect on financial statements if equipment was expensed

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What would be the affect on the financial statements if an expensive piece of equipment was expensed immediately when it was purchased?

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What would be the effect on the financial statements if an expensive piece of equipment was expensed immediately when it was purchased are determined.

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The income statement would be affected in two ways:
1. The current year net income would be understated because only a portion of the asset's cost should be expensed (through depreciation) each year, not the full cost.
2. The expense account to which the equipment's cost was charged would be overstated.

The retained earnings and total stockholders' equity amounts on the statement of shareholder's equity would be ...

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