Indicate the effectUnderstate, Overstate, No Effectthat each of the following errors has on 2020 net income and 2021 net income.

				2020		2021
(a)		Equipment (with a useful life of 5 years) was purchased and expensed in 2018.		Select an option No EffectOverstatedUnderstated		Select an option No EffectOverstatedUnderstated
(b)		Wages payable were not recorded at 12/31/20.		Select an option No EffectOverstatedUnderstated		Select an option No EffectOverstatedUnderstated
(c)		Equipment purchased in 2020 was expensed.		Select an option No EffectOverstatedUnderstated		Select an option No EffectOverstatedUnderstated
(d)		2020 ending inventory was overstated.		Select an option No EffectOverstatedUnderstated		Select an option No EffectOverstatedUnderstated
(e)		Patent amortization was not recorded in 2021.		Select an option No EffectOverstatedUnderstated		Select an option No EffectOverstatedUnderstated