Berkshire Inc. uses a periodic inventory system. At the end of 2015, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that Berkshire has a 30% income tax rate and that this was the only error it made. What is the effect of the error on Berkshire's 12/31/2016 balance sheet? a) There are no errors in the 12/31/2016 balance sheet. B)Assets understated by $600,000 and shareholders' equity understated by $600,000. c)Assets understated by $420,000 and shareholders' equity understated by $420,000. d)Liabilities understated by $180,000 and shareholders' equity overstated by $420,000.