An audit of Angelina Company has revealed the following four errors that have occurred but have not been corrected:

Inventory at December 31, 2019-P40,000, understated

Inventory at December 31, 2020-P15,000, overstated

Depreciation for 2019-P7,000, understated

Accrued expenses at December 31, 2020-P10,000, understated

54. The errors cause the reported net income for the year ending December 31, 2020 to be

a. Overstated b. Overstated by P65,000

c. Understated by P28,000

d. Understated by P45,000

55. The errors cause the reported retained earnings at December 31, 2020 to be

a. Overstated by P65,000

b. Overstated by P32,000

c. Overstated by P25,000

d. Understated by P18,000 by P72,000