In 2017 the accountant for Johnson corporation mistakenly overstates cost of goods sold by $52,000. What will be the effect of this error on Net Income for 2017? Assume a tax rate of 0%.

Select one:

a.The answer cannot be determined without knowing how much ending inventory was

b.2017 net income will be understated by $52,000

c.net income will be correct regardless of this error

d.2017 net income will be overstated by $52,000