Barbara Company's year-end December 31, 2016, financial statements contained the following errors:

Ending inventory on December 31, 2016, was overstated by $75,000.Depreciation expense was understated by $7,000.A two-year insurance policy for 2016 and 2017 in the amount of $14,000 was entirely expensed in 2016.Investments in common stock of other companies were sold in 2016 at a gain of $10,000, but the sale was not recorded until 2017.

Refer to Exhibit 22-4. The effect of the above errors on the December 31, 2016, reported assets of Barbara is that assets are

understated by $65,000

overstated by $58,000

overstated by $65,000

overstated by $92,000