. During the taking of its physical inventory on December 31, 2008, a business incorrectly counted its inventory as $356,000

instead of the correct amount of $365,000. The effect on the balance sheet and income statement would be as follows:

a.

no effect on balance sheet; net income understated by $9,000.

b.

assets and equity understated by $9,000; net income understated by $9,0

00.

c.

assets understated by $9,000;equity understated by $9,000; no effect on the income statement.

d.

assets understated by $9,000; equity understated by $9,000; net income overstated by $9,000.