Use the following information for questions 15 through 16. Friend Co. began operations on January 1, 2007. Financial statements for 2007 and 2008 contained the following errors: Dec. 31, 2007 Dec. 31, 2008 Ending inventory $132,000 overstated $156,000 understated Depreciation expense $84,000 overstated In addition, on December 31, 2008 fully depreciated equipment was sold for $28,800, but the sale was not recorded until 2009. No corrections have been made for any of the errors. Ignore income tax considerations. 15. The total effect of the errors on Friend's 2008 net income is overstated by $127,200 overstated by $184,800 O understated by $316,800 understated by $259,200