Ending inventory Depreciation expense December 31, 2020 $14,900 overstated $23,200 understated Total effect of errors on net income $ Rent of $159,000 was prepaid in 2021 covering the 12-month period beginning July 1, 2021. The entire amount was charged to expense in 2021. In addition, on December 31, 2021, vacant land was sold for $63,300 cash ($5,400 cost), but the entry was not recorded until 2022. There were no other errors during 2020 or 2021, and no corrections have been made for any of the errors. (Ignore income tax considerations.) (a) Compute the total effect of the errors on 2021 net income. Total effect on working capital $ December 31, 2021 (b) Compute the total effect of the errors on the amount of Pharoah Company's working capital at December 31, 2021. $38,200 overstated Total effect on retained earnings (c) Compute the total effect of the errors on the balance of Pharoah Company's retained earnings at December 31, 2021. $

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