34. On January 1, 2020, XYZ, Inc. acquired a $50,000 preferred stock investment. On December 31, 2020, the investment had a market value of $55,000. Aponte reported the investment in the Statement of Financial Position for $50,000 without recording any adjustment. What effect will this error have on Aponte's 2020 net income?

Select one:

to. will be underrated

b. It will be overrated.

c. It will be correct.

d. It will not affect net income.