Lozano Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $31,700, and its ending inventory on December 31 was understated by $16,300. In addition, a purchase of merchandise costing $1,830 was incorrectly recorded as a $18,300 purchase. None of these errors were discovered until the next year. As a result, taxable income for this year was: Multiple Choice 0 Overstated by $48.000 0 Understated by $64.470 0 Understated by $90,940 0 Overstated by $94.630