Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
Bishop Co.began operations on January 1, 2010.Financial statements for 2010 and 2011 con- tained the following errors:
In addition, on December 31, 2011 fully depreciated equipment was sold for $28,800, but the sale was not recorded until 2012.No corrections have been made for any of the errors.Ignore income tax considerations.

-The total effect of the errors on Bishop's 2011 net income is

A) understated by $376,800.
B) understated by $244,800.
C) overstated by $115,200.
D) overstated by $199,200.