A car manufacturer recognizes the sale of 40,000 cars in its income statement. The cars have a total selling price of 450,000 and a total cost of 350,000. All cars have been prepaid but not yet shipped to the customer. The car manufacturers statutory and effective tax rate is 0 percent. The recognition of this sale leads to the following distortions: A. No overstatement/understatement of profit or loss and equity; overstatement of total assets and total liabilities by 350,000. B. Overstatement of profit or loss and equity by 100,000; overstatement of total assets by 350,000; overstatement of total liabilities by 250,000. C. Overstatement of profit or loss and equity by 100,000; overstatement of total assets by 100,000. D. Overstatement of profit or loss and equity by 100,000; understatement of total assets by 350,000; understatement of total liabilities by 450,000