An audit of Fundy Co. for its first year of operations detected the following errors made at December 31 -

Failed to accrue $50,000 interest expense

Failed to record depreciation expense on office equipment of $80,000

Failed to amortize prepaid rent expense of $100,000

Failed to delay recognition of prepaid insurance expense of $60,000

The net effect of these errors was to overstate net income for the year by

$290,000

$170,000

$130,000

$230,000