If a company understates its ending inventory balance for 2004 by $12,500, what are the effects on its net income for 2004 and 2005? Select one: O a. Effect on 2004 Net Income - Understated $12,500 Effect on 2005 - No Effect O b. Effect on 2004 Net Income - No Effect Effect on 2005 - Overstated $12,500 O c. Effect on 2004 Net Income - Understated $12,500 Effect on 2005 - Overstated $12,500 O d. Effect on 2004 Net Income - Overstated $12,500 Effect on 2005 - Understated $12,500