Identify the impact on the balance sheet if the following information is not used to adjust the accounts: Plant and equipment are depreciated at the rate of $1,200 per month.

a. Assets overstated and Stockholders' Equity understated by $1,200.

b. Assets overstated and Stockholders' Equity overstated by $1,200.

c. Assets understated and Stockholders' Equity overstated by $1,200.

d. None of these answers are correct.

e. Assets understated and Stockholders' Equity understated by $1,200.