Amold Company/s December 31 yeariend financial statements contained the following errors: A thee year irsurance premium of 57,200 was prepaid in 2024 covering the years 2024-2026. The prepsyenent was tecorded with a debit to insurance expense. In addition, on December 31, 2024, fully depreciated machinery was sold for $3.800 cash, but the sale was not recorded until 2025 , No corrections have been made for ary of the erion. What is the total net effect of the errors on Amolds 2024 net income? Select one: a. Net income understated by $6,200 b. Net income understated by $1,400 c. Niet income overstated by $1,000 d. Net insoene undertuted by $9,600 c. Net income understated by 51,000