Please answer both with how to work it.

QUESTION 24 During its first year of operations, Edwards Company, using a periodic inventory system, made undiscovered errors in taking its year-end inventory that overstated Year 1 ending inventory by $100,000 The effect of these errors on reported income is A Year 1 Year 2 Overstated $100,000 Overstated 100,000 B Year 1 Year 2 Overstated Not affected $100,000 OC Year 1 Year 2 $100,000 Year 2 $100,000 Understated Understated S100,000 D Year 1 Overstated Understated 100,000 QUESTION 25 During its first year of operations, Felix Company, using a periodic inventory system, made undiscovered errors in taking its year-end inventory that overstated Year 1 ending inventory by $200,000 The effect of these errors on reported income is: A. Year 1 Year 2 Understated Understated 200,000 $200,000 B. Year 1 Overstated $200,000 Year 2 Overstated 200,000 C Year 1 Year 2 Overstated Not affected $200,000 O D. Year 1 Year 2 Overstated Understated 200,000 $200,000