Regan Company Regan Company reported net income of $95,000 for 2019. Early in 2020, the company discovered that its 2019 ending inventory was overstated by $5,000. Refer to the information provided for Regan Company. Determine the financial statement effects of the inventory error for 2020. a. Expenses will be overstated and net income will be understated. b. Expenses will be understated and net income will be overstated. c. Both expenses and net income will be overstated. d. Both expenses and net income will be understated