The Financial Statements of Franklin Company Contained the Following Errors

question 24

Short Answer

The financial statements of Franklin Company contained the following errors:
$$\begin{array} { l r r r } \text { Item } &{ December 31, 2009 } & {December 31,2010 } \\\text { Depreciation expense on office } & & \\\text { equipment } & \$ 1,000 understated & \$ 900 overstated \\\end{array}$$ Requirements:
A.Was net income for 2009 understated or overstated?
B.Was total combined net income for the two-year period ended December 31,2010 overstated or understated?