Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2018, Fonda Motorcycle Shop incorrectly counted its inventory as $412,980 instead of the correct amount of $396,460. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 2048, balance sheet of Fonda Motorcycle Shop Balance Sheet Items Overstated/Understated Amount 8,650 Merchandise Inventory Overstated Current Assets Overstated 8,650 Total Assets Overstated 8,650 Owner's Equity Overstated 8,650 b. State the effect of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 20Y8. Income Statement Items Amount Overstated/Understated Understated Cost of Merchandise Sold $ 8,650 Gross Profit Overstated 8,650 Overstated 8,650 Net Income c. If uncorrected, what would be the effect of the error on the 2049 income statement? Income Statement Items Understated/Overstated Amount