Bol Company's December 31 year-end financial statements had the following errors:       December 31, 2020                           December 31, 2021 Prepaid insurance                                                                      16,000 understated Unearned rental             10,000 understated Depreciation expense    7,200 understated Ending inventory               27,000 understated                     39,600 overstated There were no other errors during the year 2020 or 2021 and no corrections have been made for any of the errors. (Ignore income tax considerations) 1. What is the net effect of the errors on Bols 2021 net income? 2. What is the net effect of the errors in Bols December 31, 2021 retained earnings? 3. What is the net effect of the errors in Bol's December 31, 2021 working capital (current assets less current liabilities)?

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