Blossom Ltd$.\text{'}$s December $31$ year$-$end financial statements contained the following errors:

An insurance premium of $$3630$ was prepaid in $2022$ covering the calendar years $2022,2023,$ and $2024.$ This had

been debited to insurance expense. In addition, on December $31,2023,$ fully depreciated machinery was sold for

$$1880$ cash, but the sale was NOT recorded until $2024.$ There were no other errors during $2023$ or $2024$ and no

corrections have been made for any of the errors. Ignore income tax considerations.

What is the total net effect of the errors on Blossom's $2023$ net income?

Net income overstated by $$1480$

Net income overstated by $$2680$

Net income understated by $$2870$

Net income overstated by $$3050$