In September 2012, Jims Electro Goods (JEG) paid $700 per unit and bought 100 iPhone 5s. As at 30 June 2019 JEG still have 20 iPhone 5s left in inventory that were still valued at $700 each. JEG decide to impair their inventory and reduce the value of their remaining iPhone 5 stock to a value of $200 each. Which of the following statements is most correct: (Hint: iPhone 5s currently sell for $200, and have sold for less than $700 for numerous years).

Group of answer choices

a, In the current year, JEG have likely overstated their earnings and overstated their assets.

b. In the current year, JEG have likely understated their earnings and overstated their assets.

c. In the current year, JEG have likely understated their earnings and undervalued their assets.

d. In the current year, JEG have likely understated their earnings and correctly valued their assets.

e. In the current year, JEG have likely overstated their earnings and correctly valued their assets.

f. In the current year, JEG have likely overstated their earnings and undervalued their assets.