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 the amount of Bishop's working capital at December 31, 2011 is understated by

A) $400,800.
B) $316,800.
C) $184,800.
D) $124,800.