6. The December 31 year-end financial statements of Terry Company contained the following errors: 2013 2014 Ending inventory P30,000 understated P27,000 overstated Depreciation expense 6,000 understated Insurance premiums of P22,500 were paid in 2013 covering the years 2013, 2014, and 2015. The entire amount was charged to Insurance Expense in 2013. Likewise, on December 31, 2014, a fully depreciated machinery was sold for P48,000 but the cash sale was recorded only in January 2015. There were no other errors during 2013 and 2014 and no correcting entries were made for any of these errors. Ignore income tax consideration. What is the total effect of the errors on the 2014 net income? a. P16,500 overstated C. P24,000 overstated b. P16,500 understated d P13,500 understated