ishop Co. began operations on January 1, 2017. Financial statements for 2017 and 2018 con- tained the following errors:

Dec. 31, 2017 Dec. 31, 2018

Ending inventory $198,000 overstated $219,000 understated

Depreciation expense 126,000 overstated

Insurance expense 90,000 understated 90,000 overstated

Prepaid insurance 90,000 overstated

In addition, on December 31, 2018 fully depreciated equipment was sold for $43,20 0, but the sale was not recorded until 2019. No corrections have been made for any of the errors. Ignore income tax considerations.

The total effect of the errors on Bishop's 2018 net income is