BE21.8 (LO 3, 4) Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2024 net income and 2025 net income.

2024 2025

a. Equipment purchased in 2023 was expensed.

b. Wages payable were not recorded at 12/31/24.

c. Equipment purchased in 2024 was expensed.

d. 2024 ending inventory was overstated.

e. Patent amortization was not recorded in 2025.