Tonale Company began operations in 2014 . During the first two years of operations, Tonale made undiscovered errors in taking its year-end inventories that overstated 2014 ending inventory by $50,000 and overstated 2015 ending inventory by $40,000 . The combined effect of these errors on reported income is 2014 2015 2016

a. overstated $50,000 overstated $90,000 understated $40,000
b. overstated $50,000 overstated $40,000 not affected
c. understated $50,000 understated $90,000 not affected
d. overstated $50,000 understated $10,000 understated $40,000


D

Business

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