Wildhorse Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors: Dec. 31, 2021 Dec. 31, 2020 Ending inventory $183000 overstated $204000 understated Depreciation expense 123000 overstated Insurance expense 87000 understated 87000 overstated Prepaid insurance 87000 overstated In addition, on December 31, 2021 fully depreciated equipment was sold for $40200 but the sale was not recorded until 2022. No corrections have been made for any of the errors. Ignore income tax considerations. The total effect of the errors on Wildhorse's 2021 net income is O understated by $331200. overstated by $346800. overstated by $163800. O understated by $514200.