During the taking of its physical inventory, a company inadvertently counted its inventory as $89,400 instead of the correct amount of $86,800. Indicate the effect of the misstatement on the balance sheet of the current year. a. Assets are understated by $2,600. b. Owner's equity is understated by $2,600. c. Owner's equity is overstated by $2,600. d. Liabilities are overstated by $2,600