Bishop Co. began operations on January 1, 2019. Financial statements for 2019 and 2020 contained the following errors: Dec. 31. 2019 Dec. 31, 2020 Ending inventory $198,000 overstated $219,000 understated Depreciation expense 126,000 overstated Insurance expense 90,000 understated 90,000 overstated Prepaid insurance 90,000 overstated In addition, on December 31, 2019 fully depreciated equipment was sold for $43,200, but the sale was not recorded until 2020. No corrections have been made for any of the errors. Ignore income tax considerations. The total effect of the errors on Bishop's 2019 net income is Understate by $550,200 Overstated by $175,800 Understate by $352,200 Overstated by $373,800