While preparing his draft financial statements, Vikram made two mistakes. As a result, his gross profit was overstated by $600 and his profit for the year was understated by $250. What two mistakes did he make?
- Aclosing inventory $600 overstated; depreciation charge $350 overstated
- Bclosing inventory $600 overstated; depreciation charge $850 overstated
- Cclosing inventory $600 understated; depreciation charge $350 understated
- Dclosing inventory $600 understated; depreciation charge $850 understated