If a company overstates its ending inventory balance for 2015 by $10,000, and overstates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014? Effect on 2015 Net Income Effect on 2014 Net Income

a. Overstated by $15,000 Overstated by $10,000
b. Understated by $5,000 Overstated by $10,000
c. Overstated by $5,000 Overstated by $5,000
d. Overstated by $10,000 Overstated by $5,000


c

Business

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