AreaDuring the taking of its physical inventory, a company inadvertently counted its inventory as $35,000 instead of the correct amount of $42,600. Indicate the effect of the misstatement on the balance sheet of the current year. a. Assets are understated by $7,600. b. Owner's equity is overstated by $7,600. c. Liabilities are overstated by $7,600. d. Assets are overstated by $7,600