(L03) Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2017 net income and 2018 net income.

2017 2018

(a) Equipment (with a useful life of 5 years) was purchased and expensed in 2015.

(b) Wages payable were not recorded at 12/31/17.

(c) Equipment purchased in 2017 was expensed.

(d) 2017 ending inventory was overstated.

(e) Patent amortization was not recorded in 2018.